Mumbai, Aug29 (V7N) — Tens of thousands of small Indian exporters are scrambling to diversify their markets in Europe, Africa, and Asia after the United States doubled its import tariff on Indian goods from 25% to 50%, effective Wednesday—compounding pressure on sectors such as textiles, jewelry, and chemicals.
 
In response to the impending tariff hike, many firms accelerated shipments—front-loading existing orders in August ahead of the August 27 deadline.
 
 According to a survey by the India SME Forum, a trade association representing nearly 100,000 small exporters:
 
57% of respondents are exploring re-routing shipments or value-added processing in regions like the Gulf, Latin America, Africa, and the UK to change the country of origin designation.
 
27% plan to revive relationships with buyers in non-U.S. regions.
 
16% are considering outsourcing parts of orders to retain clients. 
 
 
 
Government support remains elusive, with authorities urging exporters to find alternative markets rather than offering immediate financial aid.
 
Economists warn that India’s GDP, with 2.2% currently driven by U.S. exports, could take a 0.6 to 0.8 percentage point hit over the next year if the disruption persists. 
 
Additionally, banks are pulling back on lending to export-dependent MSMEs due to growing uncertainty—though discussions about credit guarantees and relief measures are underway.
 
As India faces the mounting fallout from escalating trade tensions, small exporters are racing not just to survive—but to pivot swiftly amid global shifts in demand and supply chains.
 
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