India Feels Heat of Trump's 50% Tariff | CTI Chairman Brijesh Goyal EXCLUSIVE - video Dailymotion

Asianet News English

India faces a major economic challenge as the US imposes a staggering 50% tariff on Indian goods, impacting vital sectors like textiles, gems, seafood, and more. Asianet News Network brings you an exclusive interview with Brijesh Goyal, Chairman of the Confederation of Trade and Industry (CTI), sharing insights on the implications for Indian exporters, jobs, and the economy.

Transcript

00:00So joining at Asianate News today is Brijesh Goelji.

00:04Brijeshji, first of all, you know, Trump's tariff of 50% on Indian exports to US,

00:10it took into effect from 27th August. It's been entire one day now.

00:16How do you assess the situation? What is your immediate assessment? How huge is the blow?

00:22Yeah, it's very unfortunate that the US imports 50% tariff on Indian products.

00:31And it will affect badly Indian textile industry, Indian gems and jewelry industry, Indian leather, pharmaceuticals.

00:39Though he hasn't announced on the pharma, but the sword on the neck already.

00:44And the electrical, electronic sector, all these sectors will be badly affected.

00:50You see, on the last financial year, India exported around 53% textile products,

00:58around 53% gems and jewelry, 37% leather. These are the key sectors in which India deals,

01:06India exports in a very large number to USA. So these sectors will be badly affected.

01:13What all countries India can actually look up to in order to diversify its export market?

01:18Yeah, see, India should seek new country options like Vietnam, like Singapore, like Germany,

01:28UK and other European countries also. There are very good markets of electronics, pharma,

01:35textile, seafood and leather. These are the key items in which India will struggle,

01:44India will face huge problems. India will seek new options for this country, for this export.

01:51India should also reconsider its export policy. There are lots of hurdles in its export policy.

01:57So we will have to, we can't depend on USA itself every time or China.

02:05In previous years, we have seen how we have depended on China and how we

02:11solve problems with China. So we should, we should seek other countries options also.

02:16Rajesh, because you are the chairman of CTI, you, the CTI is a body which actually protects the interests of,

02:24you know, the entire industry community. Have you reached out to the government in order to,

02:28you know, kind of request some sort of measures to provide a cushion to these blows?

02:34A few days ago, we have written up letter to Prime Minister Narendra Modizi. We have sent up full details

02:42and how we can promote our Indian products. Because from last few days, we are, we are,

02:47we have been watching that Prime Minister Modizi are saying, use Swadesi, Swadesi,

02:53Indian products. So he regularly, he has been saying that use Indian products, Indian soil products. So

03:02we have sent them two suggestions also. And yesterday we have sent a letter to

03:07Commerce Minister Pius Goelji also. We are seeking, we are seeking their time also. We want to meet him

03:14and we have good response from their ministry, their concerned person. I think we will meet in few days

03:22to Pius Goelji. We have a complete memorandum, complete roadmap, how we can promote our, our items to

03:30our countries also. How we can promote our Indian, Indian products in our country. What should India,

03:37our country do to promote its, its own manufacturing, its own, own products?

03:43Prime Minister Modizi has been urging all the Indians to actually become self-reliant, buy Indian

03:50products, go vocal for local. But at this time, I also want to ask you how crucial it is industry-wise.

03:56Because when we talk about the hardest hit sector, for example, textile, we do know that India imports

04:02textile materials also. So how can we, you know, industry-wise actually look industry-wise and then

04:08solve this problem? Because India, if it's taking a hit on exports in textiles, then definitely we can do

04:14something so that we have to import less raw materials in these particular industries.

04:19India is the biggest market of textile industry. And we are facing competition with the

04:38Bangladesh and Vietnam. These are the countries where very good quality of textile to their

04:43manufacturers. And they, we are competing with them in this industry. And, and similarly,

04:50USA imposed 50% tariff on India. Similarly, they have imposed around 20% tariff on Bangladesh and

04:57Vietnam also. So it will be very difficult for our manufacturers, our textile companies to

05:04sell their products, export their products to USA. Because, because already we are, we are facing big

05:10competition with Bangladesh and Vietnam. We are the very good manufacturers of textile, textile products.

05:15So it will be very difficult for our, our manufacturers, our companies. And surely it will affect very badly.

05:23And last two days, we have seen media reports that in Gujarat, Surat, Tamil Nadu, lots of states,

05:31people have stopped their manufacturing, stopped their production. So it will be, it will definitely,

05:40discourage our employment around 10 lakhs of jobs, which I think will be affected especially on textile industry.

05:48Have you also urged the government to actually impose counter tariffs on US?

05:54Yes, yes. Yesterday, now later, we have sent to Modiji that India should also impose counter 50%

06:05tariffs on Donald Trump. Because we have seen that past history. If you, if you see, if you, if you see,

06:13if you see yourself, if Trump's policy is that in future we have seen that. If, if any country

06:21they become weak, then he always, he becomes aggressive. If you impose tariffs, he might be some,

06:30some pressure for their own benefactors, own companies. He might, he can reverse their carry also.

06:36Because until, it will be very difficult to face our issues. And that, one thing is more that,

06:43we have sent a request to Indian government that, because textile industries,

06:48is facing around 18% GST on our textile industry clause side terms. So India should, our, our GST

06:57council is going to help on 3rd or 4th September meeting. So we are, we have requested them that

07:0318% GST on clause is very, very, very high. So India, GST council should do it, cut down and it should

07:12be around 5% left. So it will be a big boost to our textile industry. And some other relief packages

07:19also should be there. Right. Rajesh, also one final question from my side. You know, when we talk about

07:27Trump, we do know that India, US longstanding ties have taken a hit. It has become so sour,

07:33but because you are the chairman of CTI, you must be interacting with Indian diaspora in US.

07:38How is the people to people connect? Because when these orders are getting cancelled, I'm pretty sure

07:42that it is not so easy for businesses to actually tackle it on a human level.

07:49Yeah, people are very tense. I've talked to people in, in the last few days, they have sent the

07:54material to US companies, their materials, materials are on the way, they have taken the order. They are

08:02very tense that what become the actual scenario, actual status of their payments and the material

08:08they have gone, they have sent to them, what will be the status. So they are very tense actually,

08:15those industries, few textile people, because I am from auto industry. I personally don't export

08:22USA, but there are lots of companies in our segment auto industry. They are very good exporter to US in

08:30auto components. So people are tense that what will be the future. That's why people, people are also

08:36a little bit optimistic that might be India, USA deal, some talks, talks become silent there. They

08:44can reverse their tariff. And if it comes around 20 to 25%, it will be equal to other countries. Then we

08:50can compete other countries. Because you see, in the whole world, if you see the chart, you see the list,

08:57India and Brazil are the maximum 50% tariff that they have been imposed. So India is the maximum,

09:05so it will be very difficult for India. In those items, then we are depending on USA. We export very

09:13largely to USA. Yes, surely that's why I am sending you that especially textile industry,

09:20we have seen in the media reports also, they are very tense and their butter and bread is in danger

09:30actually. Because if you are heavily dependent on USA, last 20, 30 years, you are selling

09:38a crores and crores of dollars to export to USA and your industry is completely, your production is

09:45heavily dependent on USA business people, then definitely it will suffer. It is going

09:50to suffer a lot. So that's why Paul is in the court of the Marindra Mobility and England government

09:58see what decisions they take and how they deal with USA on this, this tariff issue. So next few days

10:08will be very, very crucial, very interesting that how, how does it fall? Have you received some sort of

10:14grievances letters from these industries, these companies, which have been hit? Not letters specific,

10:22but yeah, you know, some lots and lots of WhatsApp groups on social media. I'm also very active on

10:28Insta, Twitter and Facebook. On social media platform, I've got lots of messages and our WhatsApp groups,

10:35nationally, we have lots of groups, lots of traders in our groups. We have got lots of grievances

10:42of their relatives, few people, their relatives are dealing, they all, they themselves are doing. So

10:48there are very, very lots of people who are in tension, who deal directly with USA. And not only

10:56the exporters, importers are also in the tensions because, because if India, USA imposed tariff, there

11:05might be India can also impose counter tariff on US exports, then our importers will also be going to

11:13be suffered. So importers are also in the tension.

India Feels Heat of Trump's 50% Tariff | CTI Chairman Brijesh Goyal EXCLUSIVE

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