Nagpur.

The United States’ sudden move to impose a 25% tariff on Indian exports has sent ripples across the industrial corridors of Maharashtra. Nagpur Today spoke to some leaders of MIDC Industries Associations on the possible effects. While some industry leaders remain cautiously optimistic, others warn of serious consequences if the situation worsens.

Nagpur MSMEs Safe for Now, But Long-Term Vigilance Required

Talking to Nagpur Today P. Mohan, President of the MIDC Industries Association, highlighted that the immediate effect on local industries—especially MSMEs in engineering and auto components—may be limited.

“While the US tariff hike on Indian products is a cause for concern, its impact on Nagpur industries may not be immediate. Most units here are diversified or serve domestic markets as well. Moreover, India has growing export opportunities in Europe, the Middle East, and Southeast Asia. However, we must remain cautious and proactive. Government support in market diversification, export incentives, and MSME resilience will be critical if the situation prolongs or escalates,” Mohan stated.

Exports Under Pressure, Electronics Sector Vulnerable

Anant Gupta, Joint Secretary of the Maharashtra Industries Association, expressed more concern over the broader export implications. “Exports and trade are going to be deeply impacted. End customers in the US will demand price reductions, which Indian exporters may struggle to provide—especially as material costs continue to rise due to global conflicts like the Russia-Ukraine war,” he explained.

He also pointed to risks in the electronics segment. “Exports of chipsets and rare earth minerals such as zirconium are likely to face major hurdles. With China cutting off supply and India’s own IREL production limited, manufacturers may need to source materials from countries like Kazakhstan—adding to both costs and complexity,” Gupta added.

Urgent Need for Policy Action

As uncertainty looms, industry leaders are urging the government to take swift action to protect Indian exporters. Key demands include enhanced export incentives, streamlined import alternatives, and stronger support for MSMEs navigating global market disruptions.

What Lies Ahead

Though the full impact of the US tariff will unfold over time, Maharashtra’s industrial sector is gearing up for challenges. The resilience of India’s exporters—particularly in emerging manufacturing hubs like Nagpur—will depend on how quickly policy support and strategic adjustments are put into motion.