Indian exporters threaten to transfer production to Africa. The reason for the high duties of the USA
The new customs rate applied to India applies to a number of goods, including precious stones and jewelry, clothing, footwear, furniture and industrial chemistry.
Indian clothing suppliers, such as Gokaldas Exports and Raymond Lifestyle, who provide great American clothing companies, including GAP, They want to use dimensions reaching only 10 percent. imposed by the United States on some African countries.
– We will continue expansion in Africa in the event of 50 percent. customs – said the Bloomberg agency managing director of Gokaldas Exports, Sivaramakrishnan Ganapathi.
American duties for Indian exports to the United States increased to 50 percent. After US President Donald Trump imposed a fine of 25 percent on this country. for purchases of Russian oil and weapons.
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In 2023, India exported textiles, jewelry and diamonds worth over $ 20 billion to the USA. According to Bloomberg, if the duties are not reduced, a drastic decrease in trade volume is expected, in some cases by up to 90 percent.
Yes, India can do American duties
India is very strongly rooted in many African countries. In the years 2022-2023, the value of double-sided trade between India and Africa reached almost $ 100 billion, which made this continent the fourth largest trade partner of India in the world.
Gokaldas Exports has four factories in Kenya and one in Ethiopia. Raymond Lifestyle also has a plant in Ethiopia, where it plans to move part of its production. Dharmanandan Diamonds, a diamond manufacturer based in Mumbai, is also considering increasing production in Botswan due to customs, the Reuters agency informed.
The total India investments in Africa are estimated at around $ 75 billion.
