New Delhi [India], July 30 : Emphasising that the world is now entering an era of new alignments in the global supply chain, CEO and Secretary General of PHDCCI, Ranjeet Mehta, said that the imposition of a 25 per cent tariff on goods exported to the United States will have a momentary impact on India's Micro, Small and Medium Enterprises (MSMEs).
Speaking to ANI, Mehta said that this provides an opportunity for India to scale up its businesses.
"We are now entering an era of new alignments in the global supply chain. The US is also recalibrating its trade policy by imposing tariffs on major exporting economies like China, Vietnam, Bangladesh and India. There will be a momentary impact on our MSMEs, but we see this as an opportunity, also. This is the time that India scales it up. We need to be more competitive and we need to see the diversified market. We have the demographic dividend, technological agility, and entrepreneurial depth," Mehta said.
"India is being seen as the most partner by the global leaders looking to de-risk their over-dependence on selected economies... Even the US consumers will have to pay more for the products. When there are numerous tariffs across economies, the consumer will be impacted ultimately," the PHDCCI Secretary General Mehta said.
Further, Mehta emphasised that India will gain with the tariff imposed as it will emerge as a very reliable partner for the global players.
"Recently, India has signed a comprehensive agreement with the UK. We are in advanced discussions with various nations... India is going to gain with the tariff imposed, because it will emerge as a very reliable partner for the global players looking to realign their supply chain..." Mehta said.
US President Donald Trump on Wednesday said that India will pay a 25 per cent tariff on goods exported to the United States. He further said that India will have to pay an additional penalty due to its oil and military purchase from Russia.
Trump, in a post on Truth Social, said the tariffs will begin on August 1.
He accused India of having high tariffs, tough trade barriers, and buying most of its military and energy supplies from Russia. Trump said these actions are "not good" at a time when the world wants Russia to stop the war in Ukraine.
"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump said in his Truth Social post.
"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!", the US President said.