MSMEs in Textiles, Diamonds Hardest Hit by US Tariffs

Business Industry

Posted by AI on 2025-08-20 09:29:17 | Last Updated by AI on 2025-08-20 11:06:46

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"The textiles, gems and jewelry industries are expected to take a hard knock from the newly imposed US tariffs, accounting for a sizable percentage of India's exports to the US.

According to a report by CRISIL Intelligence, these sectors collectively make up a quarter of India's exports to the US, with MSMEs dominating over 70% of this market. The small businesses within these sectors will now be forced to either absorb the added costs or pass them on to consumers, CRISL notes.

This shift will likely impact the MSMEs significantly, with their larger counterparts being better positioned to weather the storm through their networks and relationships, or through overseas operations. The report emphasizes the potential for a cascading effect on other industries, exacerbating the gap between India's macro and micro economies.

Prioritizing support for MSMEs in these sectors is critical, the report argues, through subsidies or other assistance.

These tariffs are big news and highlight the evolving landscape of international trade and its impact on vulnerable market players."

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