US tariff hike puts Uttar Pradesh’s industries in trouble

The imposition of 50 percent tariff on Indian exports by the US has created serious challenges in the industrial centres of Uttar Pradesh, namely Noida, Kanpur and Varanasi. Especially the textile, leather, handicraft and Banarasi saree industries are being directly affected by this.

Noida exports garments worth about Rs 50,000 crore annually, of which Rs 13,000 crore is exported to the US. According to Lalit Thukral, president of the Apparel Export Cluster, the industry is facing an existential crisis as the tariff has increased from 12% earlier to 50% now. They have demanded 15-20% relief, interest-free loans and financial support from the government.

The situation is also grim in the Kanpur-Unnao region, which is India’s major leather production hub. According to Asad Iraqi, regional president of the Leather Export Council, orders worth more than Rs 2,000 crore destined for the US have been cancelled. There are more than 300 units in the region, which depend on the livelihood of about 10 lakh people.

In Varanasi, the Banarasi sarees and carpet business has been significantly impacted. According to trader Sanjay Mehta, online and courier-based sales are being affected. Entrepreneurs from Bhadohi, Rampur and Moradabad are also expecting assistance.

Uttar Pradesh’s exports, which were Rs 80,000 crore in 2017, are set to reach over Rs 2 lakh crore by 2025. The state’s “one district, one product” policy has linked local artisans to global markets, but the new tariffs are expected to adversely impact this progress. The government plans to announce a relief package for exporters soon.