The United States has imposed an additional 25% import duty on India, which may affect the export of agricultural products and handicrafts from Bihar. Demand for products like Makhana, Lychee, Bhagalpuri Silk, and Madhubani Paintings may decrease in the US, but Bihar's exporters are planning to explore new markets to mitigate losses.
Patna: The United States has implemented an additional 25% import duty on India, effective from Wednesday (August 27th) at 12 AM. The US Department of the Interior has also issued an official notification regarding this. With a pre-existing 25% import duty on India, the total duty has now risen to 50% after the additional 25% increase. This is expected to impact India's exports to the US, which amount to approximately $48 billion.
KPS Kesri, President of the Bihar State Industries Association (BIA), stated in a conversation with ABP News that exporters from Bihar will not be significantly affected by this new tariff. However, experts believe that this additional duty could impact Bihar's exports by approximately INR 250 crore annually.
Decline in Bihar's Exports Due to Tariff Implementation
Major products exported from Bihar to the United States include Makhana, Lychee, Mangoes, Zardalu Mangoes, Madhubani Paintings, Manjusha Art, Bhagalpuri Silk, and Katarni Rice. After the implementation of the tariff, the prices of these products may increase, which could affect exports and make competition in the American market more challenging.
The impact is particularly noticeable on Makhana. Bihar accounts for more than 80% of the country's total Makhana production. Approximately 600 tons of Makhana are exported to the United States annually, with 25% of the total production going to the US. The implementation of this tariff could lead to a decline in exports and pose challenges for farmers and businesses.
Bihar's Traders Will Now Export to New Countries
Exporters from Bihar are now strategizing to increase the supply of their products to countries other than the United States. Makhana businessman Satyajit Singh said, “If there is a decrease in orders from the US, we will increase the supply to other countries. There will be some initial difficulties, but the long-term impact will be limited.”
KPS Kesri also clarified that the share of exports from Bihar to the United States is limited. The demand for agricultural and handicraft products is good in other countries as well, so the possibility of a widespread negative impact is low. Furthermore, exporters are now engaged in finding new trading partners and alternative markets.
American Tax Will Make Indian Goods Expensive
The US Department of the Interior has cited the purchase of crude oil and military equipment from Russia as the reason for imposing the additional duty. As a result, the total import duty on Indian goods has become 50%. This will increase the prices of Indian products in the American market and may affect American buyers. The challenge for exporters of products from Bihar is to maintain a balance between their price and quality.
