Nation has to stand united" against US tariffs, says Maruti Chairman

Maruti Suzuki India Chairman RC Bhargava has urged Indians to come together against the 50% US tariffs on Indian products. 

 Maruti Chairman RC Bhargava 

These tariffs took effect on Wednesday and will greatly affect exports and job creation in labor-intensive sectors such as:

Affected Industries:

Shrimp and Seafood  

India's seafood exports will likely face serious challenges because of the tariffs.

Apparel and Textiles  

The apparel industry, a key part of India's exports, will be impacted. Small and medium enterprises may also feel the effects.

Diamonds and Jewelry  

The diamond and jewelry industry, known for its high export value, will face difficulties as well.

Leather and Footwear  

The leather and footwear industry, which employs many people, will encounter challenges due to these tariffs.

Bhargava believes that unity is essential for India to tackle this issue. He stresses that it is the nation's responsibility to uphold dignity and respect and to resist any form of intimidation. He criticized US President Donald Trump for using tariffs in diplomacy, describing it as a new approach that is creating global uncertainty.

Bhargava's Key Points:

National Unity  

India needs to unite to confront the tariffs and resist bullying.

Global Uncertainty  

The US tariffs have caused disruption in global markets, and President Trump has pressured nations to reconsider traditional policies and relationships.

GST Reform  

Bhargava supports the government's announcement to restructure the Goods and Services Tax (GST), viewing it as significant for the economy.

GST Restructuring Proposal:

Two-Tier GST Structure  

The Centre has suggested a two-tier GST structure of 5% and 18%, along with a special rate of 40% for select items.

Current GST Rates  

GST is currently set at 5%, 12%, 18%, and 28%. Food and essential items are at nil or 5%, while luxury and harmful goods are taxed at 28% with an additional cess.

More About Affected Industries

The recent 50% tariffs imposed by the US on Indian products will greatly affect various industries, including:

Textiles and Apparel  

With a 63.9% duty, which includes a 50% additional ad valorem duty, Indian apparel exports may lose market share to competitors like Bangladesh and Vietnam. This sector employs over 45 million people, mostly women, and orders are shifting to other countries.

Gems and Jewelry  

This industry is facing 52.1% duties, putting jobs in Surat and Mumbai at risk. India's gems and jewelry exports were worth $10 billion, with 40% going to the US market.

Marine Products (Shrimp)  

Shrimp exports are facing 60% tariffs, endangering processing hubs in Andhra Pradesh and raising prices for Indian shrimp in the US. India's shrimp exports to the US were valued at $2.4 billion.

Leather and Footwear  

With a 50% tariff, Indian leather goods and footwear may struggle against competitors like Vietnam, China, Indonesia, and Mexico. India’s exports in these categories to the US amount to $1.2 billion.

Chemicals and Machinery  

These sectors will also face substantial tariffs, impacting India's exports and job growth.

Carpets and Handicrafts  

Carpet exports, valued at $1.2 billion, and handicrafts worth $1.6 billion may find it hard to compete as Turkey and Vietnam attract US buyers.

Agricultural Products  

Basmati rice, tea, spices, and other farm products valued at $6 billion will be subject to 50% tariffs, allowing Pakistan, Thailand, Vietnam, Kenya, and Sri Lanka to capture US demand.

Automobiles and Auto Parts  

Auto component exports valued at $3.4 billion will face 25% duties, while remaining auto exports worth $3.2 billion will see 50% tariffs.

Steel and Aluminum  

These industries face 50% tariffs, though the impact on SMEs may be limited since they mostly focus on re-rolling and manufacturing long products.

Industries exempt from tariffs include:

Pharmaceuticals  

India's generic drug exports to the US are exempt.

Electronics and Semiconductors  

Smartphones and electronics, including Apple iPhones, are exempt due to US supply chain needs.

Energy Products  

Crude oil, refined fuels, natural gas, coal, and electricity are exempt from the tariffs.

More About RC Bhargava 

RC Bhargava is the Chairman of Maruti Suzuki India Ltd, a position he has held since 2007. He is a well-known Indian businessman and former IAS officer who joined Maruti Suzuki in 1981. Bhargava significantly transformed Maruti Suzuki into India's largest automobile manufacturer.

Early Life and Education  

- Born on July 30, 1934  

- Educated at The Doon School, Allahabad University, and Williams College, Massachusetts  

- Topped the UPSC exam and became an IAS officer in 1956, serving for 25 years  

Career Highlights  

IAS Officer  

Served in various roles, including Secretary in the Ministry of Water and Power.

Maruti Suzuki  

Joined in 1981 as the company’s third employee and later became the Managing Director.

Chairman  

Appointed as Chairman of Maruti Suzuki in 2007.

Awards  

Received the Padma Bhushan, India’s third-highest civilian honor, in 2016.

Views and Insights  

Electric Vehicles  

Believes that hybrid vehicles will coexist with electric vehicles, with the latter gaining popularity in China.

Tariffs  

Encourages Indians to stand united against the 50% punitive US tariffs on Indian products.

Automobile Industry  

Advocates for favorable policies to support growth in the car industry.

Small Cars  

Predicts a rebound in small car sales in India, driven by increasing incomes among entry-level consumers.

Personal Life  

- Married and lives in Noida, Uttar Pradesh  

- Known for his integrity, fairness, and decision-making ability, which helped Maruti Suzuki succeed in India.