Jodhpur Handicrafts Set to Thrive as US Imposes Higher Tariffs on Chinese Imports

America plans to introduce new tariffs on various imported goods starting April 2. This move could significantly help India’s handicrafts industry, particularly those in Jodhpur. Industry experts believe that if the U.S. imposes higher tariffs on China while offering lower rates for Indian goods, it could open up new opportunities for Indian exporters.

Bharat Dinesh, the President of the Jodhpur Handicraft Export Association, shared that India’s current handicraft exports to the U.S. stand at around ₹2,500 crores. If the competitive landscape shifts favorably due to these tariffs, Jodhpur’s artisans could see a substantial increase in business. Many Indian exporters already have a foothold in the global market. Less competition from China could boost their growth even further.

One of the ongoing challenges is the recent 28% tariff imposed on metal products by the U.S., which has disrupted exports. Manish Jhanwar, an exporter, noted that this tariff has stalled shipments and could threaten the metal trade between India and the U.S. He believes that if the Indian government can negotiate to have this tariff lifted while penalizing China, it may revive metal exports to the U.S.

Additionally, high shipping costs, aggravated by COVID-19, have made competition tough. Chinese exporters benefit from cheaper shipping rates, as they hold a significant share of shipping lines, while Indian exporters face higher expenses. Bharat Dinesh highlighted that the Indian government’s support for exporters is currently lacking, which puts them at a disadvantage against Chinese competitors. In the past, exporters received greater incentives from the government, which have since dwindled to a mere 0.5% to 0.75%.

The economic climate in the U.S. has also impacted trade norms. Exporters are now often required to extend long-term loans instead of receiving advance payments, raising financial risks. Internal turbulence in the market, such as order cancellations, can lead to significant losses.

Moreover, discussions in the U.S. about reciprocity in tariffs could affect India. If implemented, India might face similar tariffs as those levied on China. Despite this, favorable negotiations could yield lower tariffs for Indian goods, strengthening Jodhpur’s position in the international market.

Exporters are urging the Indian government to reinstate higher incentives—ideally up to 5%—and to address shipping costs. Mahavir Bagrecha, another exporter, reflected on the heightened risks since the pandemic and emphasized that proactive government measures could rejuvenate Jodhpur’s handicrafts sector.

As the situation evolves, the potential for India’s handicrafts industry to thrive hinges on careful negotiations and government support. With the right strategies in place, Jodhpur could not only survive but flourish amid these global changes.

For more insights on trade and tariffs, you can refer to reports from The Economic Times and Business Standard.

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