Friday, Apr 4 2025 | Time 15:08 Hrs(IST)
Business EconomyPosted at: Apr 3 2025 6:50PM


Hyd: Industry reacts to Trump's reciprocal tariff: Mixed impact across sectors

Hyderabad, Apr 3 (UNI) The recent announcement by U S President Donald Trump imposing a 26 per cent reciprocal tariff on Indian exports has sparked mixed reactions across industries.
While experts believe some sectors will face significant challenges, others may find new opportunities amid shifting global trade dynamics.
Dr Suresh Kumar Singhal, President of Federation of Telangana Chambers of Commerce and Industry (FTCCI), noted that electronic goods and gems & jewelry exports would be the hardest hit due to the increased tariff burden.
However, he highlighted a silver lining—India could capitalize on the Chinese tariff of 34 per cent by capturing parts of China’s market share.
He also emphasised that pharmaceutical exports, which amount to nearly USD 9 billion, have been exempted from these tariffs, providing much-needed relief to the industry.
Chakravarthi AVPS, Senior Vice President of FOPE, called the exemption for pharmaceuticals a diplomatic victory for India, ensuring continued affordability of Indian generics in the U S market.
In the IT sector, KK Maheshwari, Vice President of FTCCI, projected an initial 20-25 per cent decline in business over the next few months.
However, he expected a partial recovery in alternative markets within the next two to three quarters. The automobile ancillary and agriculture sectors, particularly shrimp and veterinary feed exports, are also likely to experience a 15-20 per cent downturn.
Suresh Susurla, CEO of Startoon Labs, pointed out that the tariff hike could indirectly align with India’s "Atmanirbhar Bharat" mission, as it may encourage domestic manufacturing and reduce dependency on imports.
The IT sector is expected to see job losses of 20-25 per cent within a year, as companies look to cut costs. Similarly, the agriculture and automobile sectors could face job reductions of 10-15 per cent and single-digit losses, respectively.
However, Susurla suggested that a shift toward indigenous manufacturing might create more skilled jobs in India over time, offsetting some of the immediate losses.
Experts unanimously recommended diversifying markets beyond the U.S., especially in emerging economies.
Pankaj Diwan of Idealabs FutureTech Ventures stressed the importance of innovation, reskilling, and automation to maintain global competitiveness.
Viiveck Verma, Founder of Upsurge Global, urged Indian businesses to embrace AI-driven efficiencies to sustain growth amid economic shifts.
On a policy level, Srinivas Garimella, Chairman of FTCCI’s Industrial Development Committee, suggested that India must push for a bilateral trade agreement with the US to ease tariffs in the long run. He also expressed confidence that the high tariff regime might not last long, as it could contribute to inflation in the U.S., prompting a possible policy reversal.
While the immediate challenges of the reciprocal tariffs are evident, industry leaders believe that India’s resilience, cost optimization, and strategic global expansion will help navigate this economic shift. The government's PLI schemes and other incentives could further support businesses in staying competitive despite the increased tariffs.
UNI VV SJC
Tags: #Hyd: Industry reacts to Trump's reciprocal tariff: Mixed impact across sectors
More News

Institutional investments in Indian Real Estate Surge by 31 pc in Q1 2025

04 Apr 2025 | 1:15 PM

Kolkata, Apr 4 (UNI) Institutional investments in Indian real estate witnessed remarkable growth in the first quarter of 2025, rising 31 percent year-on-year to USD 1.3 billion, according to a recent report by COLLIERS.

see more..
LIC responds to USTR observations: reaffirms independent, competitive, and customer centric operations

LIC responds to USTR observations: reaffirms independent, competitive, and customer centric operations

04 Apr 2025 | 1:08 PM

Kolkata, Apr 4 (UNI) The Life Insurance Corporation of India (LIC) has taken note of the USTR’s recent remarks regarding the favourable treatment extended to LIC by the Government of India.

see more..
India's engineering goods export to be impacted by

India's engineering goods export to be impacted by "reciprocal tariff" by US

04 Apr 2025 | 12:12 PM

Kolkata, Apr 4 (UNI) As the US is the top export destination for
Indian engineering exports, the sector would be impacted at least in
the first year,
or till India expands its presence in other markets, the EEPC India
said on Friday.

see more..
Rupee jumps 38 paise against USD

Rupee jumps 38 paise against USD

04 Apr 2025 | 11:30 AM

Mumbai, Apr 4 (UNI) The rupee on Friday registered 38 paise gains at 85.06 against USD in the opening session on the selling of US dollars by bankers and exporters, dealers at the Forex Market said.

see more..
Sensex tanks over 500 pts

Sensex tanks over 500 pts

04 Apr 2025 | 11:24 AM

Mumbai, Apr 4 (UNI) Impact of the tariff on Indian importsby the US government was seen on Friday too, as the BSE Sensex slumped further by 551.13 pts at 75,744.23 in the opening session.

see more..