New Delhi: There would be no impact on the USD 23 billion-JSW Group's business due to the 50 per cent tariff imposed by the Trump administration, but sentiments in India may be hit, Jindal Cements MD Parth Jindal said on Thursday.
Terming the imposition of additional tariffs of 25 per cent by the Trump administration on Wednesday, Jindal said it was "very unfortunate", and the industry should stand with "whatever route the government of India wants to take" in the national interest.
"We have to worry about 1.4 billion people here; we don't have to worry about what's happening in other parts of the world," said Jindal on the sidelines of an event here.
His statement came a day after Trump ratcheted up tariffs on Indian goods to 50 per cent, even as the two nations discuss a bilateral trade deal. The trade deal has been stuck over the US demand for greater access to India's agricultural and dairy market.
When asked about the development, Jindal said: "No, there is no direct impact on either the steel industry or the cement industry or the power industry or the paint industry, there is no impact" due to the tariff.
However, the managing director, who also heads the paints business of the group, said the "sentiment will take a hit for sure". The export from India to the US is around USD 86 billion, of which around USD 10 billion is pharma, which has an exemption.
"So, you are looking at about USD 76 billion getting impacted, which is mainly gems and jewellery, textile and a bit of the toy industry and some of the auto component guys," he added.
When being asked if the high tariff persists, what would be the industry's demand from the government, Parth said: "I think the government, in their wisdom, is already taking steps to boost the gems and jewellery industry, to boost the textile industry.
They are acutely aware of what's going to happen if the tariffs stay and the government machinery is "working double time" on finding a solution.
"I am sure, Ficci, CII, and Assocham are also working with the government very diligently, and I am sure steps will be taken, but we have to stand by whatever route the government of India wants to take. They are taking the route which is in the interest of 1.4 billion Indians," he said.
Over the India-US relationship, Parth said It's been three decades of hard work by India and the US to get the relationship back to where it needs to be.
"India has spent a lot of time and effort as well on improving the relationship, which started improving under President Clinton and improved with every successive president," Parth said.
Parth, who had attended the Howdy-Modi event in 2019 in Houston, said: "I saw the bonhomie between Prime Minister Narendra Modi and President Donald Trump. So, I really don't know what's changed".
The oldest democracy in the world and the largest democracy in the world are natural allies, and this is just an aberration.
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