HYDERABAD: As one of the top exporters of IT services and pharmaceutical products, Telangana is likely to be impacted by the tariffs announced by the US government. Industry bodies and the state government expect a negative effect, particularly on IT exports. While the government had projected IT exports to cross Rs 3 lakh crore, the new tariffs present a challenge.
Speaking to TNIE on Wednesday before the US paused some tariffs for 90 days, IT and Industries Minister D Sridhar Babu said: “There will certainly be some impact on Telangana’s IT exports. We are in discussions with industry bodies to assess the extent of the impact from the US tariffs.” He also stated that the government was considering using the situation as an opportunity to review existing policies and plan future steps.
MK Dhanuka, Chairman of Dhanuka Agritech Limited, one of India’s leading crop protection companies, said: “The impact of US tariffs on India’s agricultural sector will be mixed. While production costs could rise due to costlier imported inputs and machinery, we have to remember that new export markets have emerged. Sectors like rice and cashews will face some strain, but India’s relatively lower tariffs compared to other Asian countries will help us retain market share.”
He said exporters have also started diversifying into Southeast Asia and West Asia, easing the impact. “The current situation highlights the importance of trade diversification and strengthening the domestic agri-value chain. For Dhanuka, we foresee no major impact,” he stated.
‘US pressure on China may enhance India’s long-term competitiveness’
The Dhanuka Agritech Limited chairman added: “In fact, US pressure on China may enhance India’s long-term competitiveness. To reduce tariff risks, India should diversify export destinations, invest in value-added agri-products, and lower input costs through GST and duty reforms.”
He said that supporting MSMEs with credit, simplifying compliance and building cold-chain infrastructure will be vital to making Indian agriculture globally competitive.
On the textile front, Suresh Kumar Singhal, president of the Federation of Telangana Chambers of Commerce and Industry, told TNIE that the impact of US tariffs on Indian textile exports will be minimal. “The US has imposed a 27% tariff on India, 104% on China, and 37% on Bangladesh.
As Bangladesh is currently the largest exporter of garments and textiles to the US, its exports will be hit harder. This gives India an opportunity to expand its textile exports to the US, given our comparatively lower tariffs,” he said.
He added that since Prime Minister Narendra Modi and US President Donald Trump have a good relationship, he was optimistic that India would be able to address the issue. He expressed confidence that the Centre would ensure minimal adverse impact on Indian industries.
In an informal interaction with reporters, BRS working president and former IT minister KT Rama Rao said that the US tariffs would disrupt India’s export ecosystem.
He criticised the Union government’s silence on the matter, stating it could negatively influence investor sentiment, and urged the Centre to review the issue, especially as India’s manufacturing sector is still developing.
Pointing out that Telangana contributes a major share of India’s IT exports, Rama Rao urged the state government to take prompt action to meet the challenge. He accused the state government of failing to address threats to the IT sector, alleging it lacks a comprehensive vision.