US tariff shock puts Indian MSMEs at risk, industry seeks govt support

MSMEs, which drive 45% of India's exports, warn of a $30 bn blow as US imposes steep tariffs; industry calls for urgent support and export market diversification

India’s micro, small and medium enterprises (MSMEs) — which contribute over 45 per cent to outbound shipments — are facing a major disruption following the United States decision to impose 50 per cent additional tariffs on the country’s exports.

 

MSME industry bodies have raised an alarm over the deep impact, seeking immediate government intervention.

 

Vinod Kumar, president of the small and medium enterprises forum (SME Forum), said the steep tariff hike could lead to an annual loss of over $30 billion in business, with MSMEs being hit the hardest due to their limited financial buffers and capacity constraints.

 

Anil Bhardwaj,