The US’s high tariffs on Chinese imports are probably going to give Indian toy and clothing exporters the chance to operate at almost full capacity as a result of the flood of queries they receive from American consumers wishing to diversify their imports.
Due to high tariffs of up to 245 per cent on Chinese imports, which make it impossible for US buyers to import from China, textile and toy exporters are preparing to increase capacity utilisation to 90–95 per cent from 70 per cent now in order to satisfy anticipated demand for extra orders.
Since MSME apparel exporters are primarily summer garment manufacturers, April through September is typically a lean time for them. However, because of high tariffs on China, there is a growing chance that some Chinese businesses will move to India, keeping the exporters busy during this time, according to Sudhir Shekhir, chairman of the Apparel Export Promotion Council. With 245 per cent tariffs on Chinese imports, US clients are already asking if Indian exporters can bridge the supply chain gap.
Indian exporters face the difficulty of matching Chinese suppliers’ prices before the US government imposed tariffs.
Chinese companies have established themselves firmly in US-led global supply chains, which present potential for Indian MSMEs but also pose significant capacity challenges. This is a dynamic situation. According to Federation of Indian Micro and Small & Medium Enterprises secretary general Anil Bhardwaj, reckoning reforms are long overdue.
