BENGALURU: India’s export economy has been shaken by Washington’s sudden imposition of punitive tariffs of up to 50 per cent on Indian goods.
With marine products, textiles, gems, automobiles and electronics caught in the crossfire, nearly Rs 7.25 lakh crore worth of shipments are in the grey zone.
Economists warn of a potential Rs 48,000-crore loss this year, shaving as much as 0.6% off GDP growth. But even as the gloom deepens, commodities experts see a ray of hope: rice exports, considering there is rice stock available.
India shipped a staggering Rs 83,000 crore worth of rice globally last year, though only Rs 3,200 crore went to the US. Experts say that with abundant domestic stocks, easing restrictions on rice exports could be a quick, high-impact move to soften the tariff blow.
“India has surplus of rice. Whatever we don’t need domestically, we must export,” said Prof. Govind Rao, noted economist and member of the 14th Finance Commission. But he cautioned that reforms must back this strategy: “Our agricultural universities must help boost productivity and develop high-yielding, profitable varieties.” Former ISEC director Prof. RS Deshpande said, “Rice exports can offset losses in marine and textile sectors. Demand is strong in Western Europe, West Asia and Africa.”
Marine products, especially shrimp, face tariffs exceeding 58%, wiping out India’s edge against Ecuador. The sector fears a Rs 600-crore hit and 20% slump in volumes. Textiles stand to lose up to Rs 75,000 crore, threatening nearly a million jobs.