By Admin 
Dumping in India: If America will impose more tariffs on other countries, then the risk of dumping and more goods in India may increase. This warning ratings have been given by the agency Carez Rating. According to his report, the effect of high tariffs can be bad on some sectors.
This decision of America will have different effects on each sector. It will not have any effect on medicines as they are exempted from tariffs. Electronic goods, clothes, agricultural products, chemicals and parts of vehicles will not have much effect. But it can have a negative effect on gems and jewelery (such as gold-silver jewelry). In FY 2023-24, India sold goods worth $ 77.5 billion to the US, while bought from the US $ 42.2 billion.
The highest tax on these goods
The most goods sent to America from India include electronics, clothes (textile), medicines, gems and ornaments, agricultural products, chemicals and parts of vehicles. Till now the US used to impose an average of 3.50% tariff on these items coming from India, but now it has been increased to 26%. Former US President Donald Trump has said that America will now put as much tariffs to bring equal in business as other countries put on the goods of America. This will enable trade between all countries on equal basis.
Trump put everyone in trouble
According to the report of CARAIGE ratings, increasing the tariffs of America can have a bad effect on some sectors in India. However, America has imposed more tariffs on other countries than India. For example, 46%on Vietnam, 37%on Bangladesh, 34%on China, 32%on Taiwan and Indonesia, and 29%tariffs on Pakistan. The rating agency says that it can be beneficial for India as it can promote India’s exports. If the goods of other countries will become expensive, then America can buy more goods than India.
India is hovering over the threat of dumping
Now a new concern has arisen in front of India. America has imposed tariffs (a kind of tax) on some countries. This has increased the danger that companies of those countries can now sell their products at a very cheap price in India – so cheap that it is less than their real cost. This is called “dumping”. Dumping occurs when a country or company sells its belongings in another country at a lower price than its country. This can cause damage to things made in India because cheap things from outside start selling more in the market.
A report states that the impact of America’s tariff will not be the same on every sector. There will be no effect on medicines, as they are currently discounted. Electronics, clothes, farming products, chemical and auto parts will not have much effect. But the business of gems and jewelery (such as gold-silver jewelry) can be damaged. This means that there may be some problems in this sector.
How much business between India and America?
In FY 2023-24, India sold (exported) of $ 77.5 billion to the US and bought $ 42.2 billion goods. That is, India sells more goods to America and buys less. US President Donald Trump says that business should be equal, so he has decided that the US will now impose as much tariffs on other countries as they put on America.
Trump has issued an executive order on 2 April, under which goods coming from all countries will charge an additional fee of 10% to 50%. The baseline fee of 10% will be applicable from 5 April 2025. The remaining additional fees will be charged from 9 April 2025. India will charge an additional 26% fee. Carey ratings have warned that due to this, the problem of dumping (other countries can sell cheap goods in India) in India may increase, which will harm Indian industries. Therefore, India should prepare it from now on.