Will US Tariffs Significantly Affect India’s Brass Industry?
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Synopsis
As US tariffs rise, India's brass industry stands resilient with traders highlighting domestic market opportunities. Could government interventions further bolster this vital sector? Explore the insights of industry experts and the economic backdrop in this compelling analysis.
Key Takeaways
- US tariffs have increased to 59%, affecting competitiveness.
- India's brass exports to the US account for 8-9% of total exports.
- Government intervention may be needed to support the industry.
- India's overall economy remains strong with a 7.8% GDP growth.
- Production costs in India are still lower than competing nations.
New Delhi, Sep 1 (NationPress) Recent tariffs imposed by the US are not anticipated to greatly affect India’s brass sector, as traders assert that there are ample prospects within the domestic market.
Brass trader Lakha Bhai Kaiswala informed IANS that the US constitutes approximately 8–9 percent of India’s total brass exports. While the tariff may influence the competitiveness of Indian exporters, it is improbable to cause substantial disruption to the overall brass industry, he stated.
Kaiswala emphasized that factories generally produce a range of brass items for export to multiple countries, hence, the US tariff does not threaten the sustainability of India’s brass sector.
He further suggested that to alleviate the repercussions, the government should contemplate a relief package akin to those implemented during the Covid-19 crisis, along with initiatives to lower interest rates on loans for the industry.
Another trader, Prakash Katarmal, highlighted that prior to the tariff increase, Indian brass exports to the US faced duties of up to 9 percent.
This rate has now escalated dramatically to 59 percent. He noted that the elevated duty diminishes India’s competitiveness, particularly as nations like Vietnam and Taiwan face tariffs of merely 18–25 percent.
Despite India's production costs being lower than those of rival countries, the steep US tariffs have rendered Indian goods pricier in the American marketplace.
Nevertheless, India’s overall economy continues to advance robustly, with a GDP growth rate of 7.8 percent recorded in the first quarter of FY26 (April–June), compared to 6.5 percent for the same timeframe last year.
As per data from the National Statistical Office (NSO), India’s real GDP reached Rs 47.89 lakh crore in the April–June quarter, a rise from Rs 44.42 lakh crore a year prior.
Point of View
The brass industry's resilience amidst rising US tariffs showcases India's adaptability. As the economy grows, it is vital for policymakers to strategize effectively to support sectors affected by global changes, ensuring that they remain competitive on the international stage.
NationPress
01/09/2025
Frequently Asked Questions
How much of India's brass exports go to the US?
Approximately 8-9 percent of India's total brass exports are directed towards the US.
What are the current tariffs on Indian brass exports to the US?
The tariffs on Indian brass exports to the US have risen sharply to 59 percent.
What impact do these tariffs have on India's brass industry?
While the tariffs affect competitiveness, they are unlikely to significantly disrupt the overall brass sector.
What suggestions have traders made to mitigate the impact of tariffs?
Traders have suggested a government relief package and schemes to lower loan interest rates for the industry.
How is India's economy performing despite these challenges?
India's economy is growing robustly, with a GDP growth rate of 7.8 percent in the first quarter of FY26.
