Industry says eco resilient, to pursue diversification strategy

New Delhi: Backing govt stand on the trade deal with the US, Indian industry on Wednesday said the economy remained resilient and businesses will pursue a diversification strategy to offset impact of 50% additional tariffs imposed by American President Donald Trump on Indian exports.

While acknowledging challenges, Apparel Export Promotion Council chief Sudhir Sekhri wrote to PM Narendra Modi, supporting the stand taken to protect interests of farmers and dairy industry and arguing that the industry is exploring alternate markets and strategies to mitigate the impact of US actions. Textiles is seen as one of the sectors that will be hit hard by Trump's tariffs.

"Our businesses have a proven track record of adapting quickly, innovating and expanding into new frontiers. Exporters across textiles, gems and jewellery, agriculture and shrimps face steep duties, yet they are accelerating diversification into Africa, Latin America, Europe and Asean, while strengthening competitiveness at home," said Assocham president Sanjay Nayyar.

Apart from diversifications, were other focus areas were also flagged. "It's time to turn challenges into advantages by diversifying our trade, promoting our MSMEs, strengthening our agriculture and building new global alliances. Indian industry must now invest in quality, branding and technology to make our products and services indispensable worldwide," said CII president Rajiv Memani.

Besides, businesses are banking on govt's measures to support domestic demand. "Indian economy continues to demonstrate resilience and strength amid global headwinds, underpinned by a large and vibrant consumer base, robust macroeconomic fundamentals, continued economic reforms and enterprising businesses. The proposed next generation GST reforms announced by PM will give a further boost to India's growth," said Ficci president Harsha Vardhan Agarwal.


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