Trump Tariff: US President Donald Trump has imposed 50 percent tariff on India. With this, India has now joined the list of countries including Brazil, on which the most American tariffs have been imposed. With the same decision of Trump, there is a cloud of uncertainty on textile exports of Rs 87,000 crore from India to the US to the US. Experies whose manufacturing base are abroad, now they are planning to shift their production outside India. This has been revealed in the Economic Times report.

Production can be shifted to these Asian countries

Pearl Global Industries says that we are thinking of shifting the production of clothes exported to America to more favorable centers. The company’s managing director Pallab Banerjee, while announcing the results of the company’s quarter, said, “We are getting positive response from American customers for its operations in Vietnam, Indonesia, Bangladesh and Guatemala.”

Preparations to shift production in Africa too

Talking to ET, the second top garment and textile expoters said that they are planning to shift their production to Africa for American audiences. He says that there is a plan to shift his production for American audience in his manufacturing facility in Africa. Pearl Global’s manufacturing occurs in India, Bangladesh, Vietnam, Indonesia and Guatemala. The company supplies global brands such as Chikos, Kohls, Old Navy, Poligono, Primary, PVH, Ralph Lauren, Stylem and Target.

Way of development for India

On the matter of imposing 50 percent tariffs on India, Pallab Banerjee said that the company is working again on its business strategy amid these changing circumstances. He informed that production for American markets will be shifted to more favorable centers. At the same time, India can continue its development by taking advantage of other partnerships like the free trade agreement with Britain and focusing on its other FTA markets like Japan and Australia until the issue of tariff is resolved.

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