Bhopal (Madhya Pradesh): With 50% tariff imposed by the US on Indian goods from Wednesday, industrialists in Madhya Pradesh are now looking to new international markets in Africa, European Union and Australia to sustain their export businesses.
The US currently accounts for 16% of MP’s total global exports, valued at Rs 13,509 crore. The textile sector is expected to face the biggest immediate impact.
Alka Agrawal, who runs a food and textile industry in Bagrodha, Bhopal, said the US tariff has clearly affected textile sector, as it was one of the main markets for such products.
“Thankfully, in the past couple of months, the Union government has taken initiatives to open new markets like the EU. So, the focus is now shifting to EU, African countries and Australia. The impact is definitely there, but not as hard as anticipated, since we’ve already started exploring other markets,” she said.
Industrialist Gautam Kothari, based in Pithampur, said the textile and pharmaceuticals sectors are likely to be affected. However, he believes the overall impact will not be severe. According to him, exporters may find new ways to supply goods to the US via other countries such as Bangladesh.
Bhopal-based industrialist CB Malpani said the impact will be felt immediately as supplies will be blocked. However, he pointed out that the US cannot meet its medicine needs without Indian exports.
He said many exporters may opt to send goods to the US through Canada or other countries, as American demand for such products remains strong. He expects the situation to stabilise in a few months.
Setback for textile export
Sectoral data for Madhya Pradesh’s apparel and textile exports to the United States in financial year 2024–25 shows the US accounts for Rs 13,509 crore out of MP’s total global exports of Rs 83,163 crore.
Of this, textiles and apparel exports stand at Rs 3,546 crore. Textile articles and worn clothing alone contribute Rs 3,033 crore, followed by knitted apparel and clothing accessories at Rs 714 crore, and manmade staple fibres at Rs 203 crore.
Textiles and apparel (HSN 52–63) contribute 26% of MP’s exports to the US, while HSN 63 (textile articles and worn clothing) alone makes up over 85% of these textile exports.
