new delhi, Aug 28
The Uttar Pradesh government is looking at all options to save the Micro, Small, and Medium Enterprises (MSME) industry post the imposition of 50 per cent tariffs by the US on Indian goods.
The MSME department has suggested considering market options along with the exemptions given by the government.
Before the India-US tussle over tariffs, in the year 2024-25 alone, exports worth Rs 36,850 crore (USD 4.20 billion) were made from Uttar Pradesh, which include dairy products, leather, textiles, carpets, gems and jewelry, iron and steel, electronics, automobile parts, and furniture.
The highest share includes electronic items worth USD 487.45 million, clothes worth USD 445.81 million, carpets worth USD 396.87 million, and steel and iron worth USD 322.11 million.
India exported goods worth USD 91.2 billion to the US in 2023-24. Under the bilateral goods trade, the figure stood at USD 134 billion. These include electronic machinery, gems, jewelry, pharmaceuticals, industrial machinery, mineral oil, iron and steel, vehicles, organic chemicals, and clothes.
According to the MSME department sources here on Thursday, after the imposition of the tariff, the tax has increased to 60-65 per cent on textiles and garments, 54.50 per cent on meat, dairy, and poultry products, 52.5-59.5 per cent on leather goods and footwear, 53.70 per cent on carpets, 50-55 per cent on engineering goods, 50-53 per cent on iron and steel, and 50-63.5 per cent on gems and jewelry.
In such a situation, due to the increased US tariffs on Indian goods, the Uttar Pradesh government is preparing to unload the products exported to the US in countries like Japan, South Korea, the UK, and the UAE to prevent the damage.
According to MSME Department Secretary Pranjal Yadav, the government is very serious in this direction. Strategy is being adopted keeping in mind the global market.
Along with increasing the amount given in Marketing Development Assistance, Gateway Port Assistance, and Air Freight Assistance schemes, efforts are being made towards adequately funding the State Market Development Assistant Scheme.
