Industry bodies told a parliamentary panel that US tariffs, trade uncertainty and the West Asia crisis are increasing pressure on Indian exporters through higher costs
May 23, 2026: Indian exporters and industry bodies on Friday told a parliamentary committee that US tariffs, non-tariff barriers and ongoing geopolitical tensions in West Asia have significantly affected several key sectors in India. Representatives said rising freight charges, higher insurance costs, supply chain disruptions and shipping delays are creating mounting pressure on export margins and business operations.
The submissions were made before the Parliamentary Standing Committee on Commerce headed by Dola Sen. The Federation of Indian Export Organizations (FIEO) said sectors including engineering goods, steel, aluminium, textiles, pharmaceuticals and auto components were facing uncertainty due to frequent tariff reviews, stricter rules-of-origin scrutiny and product reclassification risks in the United States. The body stressed that a balanced India-US Bilateral Trade Agreement (BTA) was essential for ensuring long-term trade predictability and stability.
The Confederation of Indian Industry (CII) also warned that a US investigation into “Structural Excess Capacity & Production” involving 16 economies could result in additional tariffs on Indian sectors such as solar manufacturing, automotive products, textiles and steel. Despite ongoing trade frictions, India-US merchandise trade crossed nearly $140 billion in FY26, compared to around $132 billion in FY25. Dola Sen said the parliamentary panel would visit Ahmedabad, Raipur and Odisha to interact directly with affected industries and stakeholders.