Exporters said their primary concern stems from the possibility that China could face a similar levy. Indian exporters are not too worried about the latest proposal to impose 12.5% tariffs on 54 countries; they’re instead fighting an all too familiar fear — China. What really bothers them is the same levy on China, ToI’s report (by Sidhartha) said.
Industry executives argued that a uniform tariff structure would dilute India’s relative advantage at a time when global buyers are increasingly diversifying sourcing away from China.
Exporters maintained that India has a well-established regulatory framework governing labour practices and worker welfare.
Also read | Why Amazon has struggled to crack India
Industry bodies said the country’s manufacturing ecosystem operates under stringent labour laws and compliance mechanisms, making it distinct from jurisdictions that have faced allegations of forced labour.
The exporting community expects trade negotiators from both countries to address any concerns through discussions as negotiations for the proposed bilateral trade pact gather momentum.
TNNIndustry representatives said stronger economic engagement between New Delhi and Washington should help prevent trade frictions from affecting long-term commercial ties.
Sectors such as footwear, leather goods and garments have been particularly vocal in defending India’s manufacturing credentials.
Executives from the leather industry said Indian factories supplying global markets are subject to extensive audits and compliance requirements, while the sector generates large-scale employment and has significant participation from women workers.
Also read | Maruti Suzuki launches India’s first flex-fuel car
They warned that any additional tariff burden could hurt export-oriented micro, small and medium enterprises and undermine efforts by American buyers to reduce dependence on Chinese supply chains.
Some exporters are also exploring the possibility of advancing shipments to the US before any revised tariff regime takes effect. Industry sources indicated that disruptions in global shipping routes have extended transit times, creating a narrow window for exporters to ensure consignments arrive under the current duty structure.
For many Indian exporters, business conditions have improved in recent months following the introduction of a uniform additional tariff regime by the US.
Companies said the existing framework has created a more level competitive environment across supplier nations, helping Indian exporters regain momentum in key categories.
Garment manufacturers, in particular, reported healthy order flows from American buyers. Industry executives noted that unlike the previous year, when suppliers were compelled to offer substantial discounts to retain business, buyers are currently absorbing a significant portion of the additional costs associated with tariffs.
The higher costs are ultimately being passed on to consumers, but exporters said demand has remained resilient despite price increases.
Industry stakeholders broadly view the proposed India-US trade agreement as a positive development. However, they stressed that the final outcome should ensure India retains a meaningful competitive edge over major export rivals such as China, Vietnam and Bangladesh.
Exporters said traditional labour-intensive sectors including textiles, apparel, footwear and leather products stand to gain substantially if the agreement delivers preferential market access and tariff advantages.
With negotiations continuing, businesses are hoping the eventual framework strengthens India’s position in one of its most important export destinations while supporting the country’s ambitions of becoming a larger player in global manufacturing supply chains.