August 27th 2025.
The recent imposition of a 50% tariff on Indian goods by the US has left industrialists in Madhya Pradesh searching for new international markets to sustain their export businesses. This move has caused concern among the industrial community, as the US currently accounts for 16% of the state's total global exports, valued at a whopping Rs 13,509 crore. The textile sector, in particular, is expected to face the biggest blow.
Alka Agrawal, who runs a food and textile industry in Bagrodha, Bhopal, shared her thoughts on the situation. She stated that the US tariff has already had a significant impact on the textile sector, as it was one of the main markets for such products. However, she also mentioned that the Union government has been taking steps to open up new markets, such as the European Union, in the past few months. This has given hope to the industrialists, who are now turning their focus towards African countries and Australia. While the impact is definitely being felt, it has not been as severe as initially anticipated, thanks to the exploration of alternative markets.
Gautam Kothari, an industrialist based in Pithampur, believes that the textile and pharmaceuticals sectors will take a hit due to the US tariff. However, he remains optimistic that the overall impact will not be too severe. He suggests that exporters may find ways to supply their goods to the US through other countries, such as Bangladesh. CB Malpani, another industrialist from Bhopal, also expressed concerns about the immediate impact of the tariff, as it will cause blockages in supplies. He also pointed out that the US heavily relies on Indian exports for their medicine needs, giving hope to exporters. He predicts that many may choose to send their goods through Canada or other countries, as the demand for such products in the US remains strong. He expects the situation to stabilize in a few months.
Meanwhile, there is still uncertainty surrounding the extension or new appointment of Chief Secretary Anurag Jain. With only two working days left, the decision is still pending. This news comes as a setback for the textile export sector, which is already facing challenges due to the US tariff. According to sectoral data, the US accounts for a substantial amount of Rs 13,509 crore out of MP's total global exports of Rs 83,163 crore in the financial year 2024-25. The textile and apparel exports alone make up Rs 3,546 crore of this amount. Textile articles and worn clothing are the major contributors at Rs 3,033 crore, followed by knitted apparel and clothing accessories at Rs 714 crore, and manmade staple fibres at Rs 203 crore. These exports make up a significant 26% of MP's exports to the US, with HSN 63 alone contributing over 85% of the textile exports.
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