July 31, 2025: Reacting to the recent announcement of a 25% tariff by the United States on Indian exports, Mr. Rajeev Gupta, Joint Managing Director of RSWM Ltd., described it as a temporary setback for the Indian textile and manufacturing industry. The industry had anticipated a lower tariff range of 15–20%, making the actual rate a surprising deviation. However, Gupta remains optimistic about India’s long-term trade outlook.
“The 25% tariff by the U.S. comes as a temporary setback, especially when expectations were set around 15–20%. While it might lead to a slowdown in the short term, we believe it’s not a long-lasting disruption,” said Mr. Gupta.
He emphasized that the recently signed Free Trade Agreement (FTA) with the UK provides a new horizon for Indian exporters, potentially offsetting the losses from the U.S. market. He added that while India continues to face challenges related to capacity and availability of skilled labor, a strategic pivot to the UK market could ensure sustained business growth.
“India’s capacity and trained labour constraints remain, what will set us apart is focus on the UK market to ensure sustained business,” Gupta explained.
Gupta also underlined Indian entrepreneurs’ resilience and adaptability, stating that with focused strategies and execution, momentum will not only recover but grow stronger.
However, he also flagged an area of concern: “What remains crucial is clarity on the tariff position against China. A more pressing concern is the undefined penalty clause linked to India’s ties with Russia, which adds a layer of uncertainty.”
As Indian businesses assess the impact of the U.S. decision, leaders like Gupta continue to champion strategic diversification, policy clarity, and global partnerships as the way forward.
