Spanish
The Federation of Indian Export Organizations (FIEO) requested immediate support from the Government of this Asian country to companies in the face of the entry into force this Wednesday of the United States' punitive tariffs that raise the total rate to 50% on key products due to the purchase of Russian oil.
In a statement, FIEO expressed its "utmost concern" and detailed a rescue package that includes interest subsidy programs, export credit support to maintain liquidity, and a one-year moratorium on loan repayment for SMEs.
"Given the current scenario, FIEO Director SC Ralhan urges the need for immediate government support, including the boost to interest subsidy programs and export credit support to maintain working capital and liquidity," the federation said in its statement, published last night.
Similarly, FIEO requested to expedite the negotiation of trade agreements with the European Union (EU), Oman, Chile, Peru, the Gulf countries, Africa and other Latin American countries.
"Even so, taking advantage of the window of negotiation for an urgent diplomatic dialogue with the U.S. remains key," said the FIEO.
The FIEO justified the urgency of its request by reporting that some textile manufacturers in the key centers of Tirupur, Noida and Surat have already stopped their production, unable to compete with rivals from Bangladesh or Vietnam under the new tariff structure.
In addition to textiles, some of the sectors most affected by tariffs will be gems and seafood, while others in which the U.S. has interests, such as pharmaceuticals or electronics, will be exempt from the new taxes.
"Regarding seafood products, especially shrimp, given that the US market absorbs almost 40% of Indian seafood exports, the increase in tariffs could lead to stock losses, supply chain disruptions, and difficulties for aquaculture farmers," said FIEO.
The total tariff of 50% faced by India is the result of two distinct actions by the White House. The first, a 25% rate for "trade imbalances," came into effect on August 7th. The second, an additional punitive levy of 25%, has been activated today, August 27th, as a direct punishment for imports of Russian oil.
Indian Prime Minister Narendra Modi pledged this week that India would withstand US tariff pressure, while the central bank of this Asian country has expressed its intention to support the sectors affected by US tariffs.
