{"id":4757,"date":"2025-08-12T19:15:18","date_gmt":"2025-08-12T19:15:18","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/12\/indian-diamond-shrimp-and-textile-sectors-to-face-heat-from-us-tariff-shifts-says-crisil-economy-news\/"},"modified":"2025-08-12T19:15:18","modified_gmt":"2025-08-12T19:15:18","slug":"indian-diamond-shrimp-and-textile-sectors-to-face-heat-from-us-tariff-shifts-says-crisil-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/12\/indian-diamond-shrimp-and-textile-sectors-to-face-heat-from-us-tariff-shifts-says-crisil-economy-news\/","title":{"rendered":"Indian Diamond, Shrimp, And Textile Sectors To Face Heat From US Tariff Shifts, Says Crisil | Economy News"},"content":{"rendered":"


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India\u2019s diamond polishing, shrimp, home textile, and carpet industries face a major revenue squeeze after US imposed an additional 25% tariff<\/h2>\n
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India\u2019s diamond polishing, shrimp, home textile, and carpet industries face a major revenue squeeze after the United States imposed an additional 25% tariff on Indian goods effective August 27, Crisil Ratings warned. The levy\u2014introduced as a penalty for India\u2019s crude oil imports from Russia\u2014comes on top of an existing 25% reciprocal tariff, making US exports unviable for many companies.<\/p>\n

The impact will vary across sectors based on US market exposure, cost pass-through ability, and competitiveness versus other exporters, Crisil said in a credit alert. It also cautioned of \u201csecond-order effects” from weaker US demand and global trade realignment due to uneven tariffs worldwide.<\/p>\n

The US accounts for about 20% of India\u2019s merchandise exports. Sectors most exposed include diamond polishing, shrimp, home textiles, carpets, garments, chemicals, agrochemicals, capital goods, and solar panel manufacturing.<\/p>\n

Diamonds:<\/strong> Roughly a quarter of diamond polishers\u2019 revenue comes from US exports. Tariffs and sluggish US demand for natural diamonds could severely dent revenue and margins, Crisil said, adding that American retailers are unwilling to absorb higher costs\u2014leading to slower inventory clearance and delayed payments.<\/p>\n

Shrimp:<\/strong> Nearly half of shrimp exporters\u2019 revenue comes from the US, which already imposes anti-dumping and countervailing duties. The higher tariff may further cut volumes, especially against lower-tariff competitor Ecuador. \u201cThe sector\u2019s thin margins will be squeezed even more,” Crisil noted.<\/p>\n

Textiles & Carpets:<\/strong> With the US buying 60% of India\u2019s home textile exports and half of its carpets, higher tariffs could trigger steep revenue and profit declines. The discretionary nature of these products limits retailers\u2019 ability to pass on costs.<\/p>\n

Other Sectors:<\/strong><\/p>\n