Representative image Photocredit: Debasish Bhaduri
The extra rate of 25 percent imposed by US President Donald Trump on India will result in a big blow to the export-driven economy of West Bengal, with the labor-intensive learning, engineering and marine sectors of the state that expects losses for the festive season, said stakeholders.
The increased levies on Indian products for the purchases of Russian oil from the country came into effect on Wednesday, which imposed the total number of rate on New Delhi up to 50 percent.
Exportors said that shipments and even production “are currently on hold”, amid geopolitical headwind, intensified by the American rates.
According to trade estimates, the move will influence at least £ 45,000 crore in Indian export, with Bengal among the “most difficult affected” states.
“Labor-intensive industries are under serious pressure. In the export of the marine, the maximum of the annual shipments of Bengal can collapse,” said Yogesh Gupta, regional chairman (East) of the Federation of Indian Export Organizations (FIEO) and a leading marine exporter, told PTI.
The state accounts for 12 percent of Indian export of seafood, dominated by shrimp varieties that are cultivated in North and South-24-Parganas and PURBA Medinipur District.
“From the current total export of £ 8,000 crore to the US of West Bengal, marine shipments worth at least £ 5,000-6,000 crore of the state on direct hit,” said Seafoods Exporters Association of India (East) Chairman Rajarshi Banerji.
Gupta warned that around 7,000-10,000 jobs in processing units, and much more at the level of the farm, are at risk, because states such as Andhra Pradesh are starting to compete with Bengal on non-American markets.
Currently, the exporters based in Andhra Pradesh are more focused on the US, with a large presence in the country.
The leather industry is also confronted with the victims of the increased taxes, with the US one of the largest buyers.
“Bantala Leather Hub, near Kolkata, only five Lakh people employs India and Brazil, are confronted with a rate of 50 percent, while Southeast Asia has a much lower rate of 19-20 percent, which will kill Indian export to the US,” said MD-Prodatics Vice-Presior Vice-Presior.
West Bengalen accounts for almost half of India’s leather export, with a value of £ 5,000-6,000 crore per year, with the US absorbing around 20 percent.
Kolkata, one of the largest hubs for leather goods in the country, houses 538 tanneries, 230 footwear units and 436 leather goods.
Industry officials warned that the shock can also wrinkle on European markets, because Kolkata made goods often led by Europe before they are sent to the US.
Exportors investigate the solution, including partial production in Europe, to obtain a tag “made in Europe” for access to the American market, they said.
The footwear category is expected to be hit best, because it represents 40 percent of global leather exports. In FY’25 alone, India’s leather footwear to the US was almost $ 500 million, the stakeholders in the industry said.
The technical goods sector is also vulnerable.
Engineering Export Promotion Council’s (EEPC) Former chairman and a leading casting exporter Rakesh Shah said that the US is good for around $ 20-21 billion of India’s technical exports, almost $ 1 billion from West Bengalen.
“Everywhere between 50,000 and 1 Lakh jobs in the foundry-related industry of West Bengal are linked to this trade,” he noticed.
The Department of Homeland Security (DHS) said in a draft assignment that was published on Monday, the increased taxes that would affect Indian products that are “being introduced for consumption, or withdrawn from the warehouse for consumption, on or after 12:01 pm Eastern Daylight Time on August 27, 2025”.
Trump had announced mutual rates of 25 percent on India that came into effect on August 7, when taxes on around 70 other countries also started.
On August 7, the US president announced doubling rates on Indian goods to 50 percent for purchases of Russian crude oil from India, but gave a 21 -day window to negotiate an agreement.
Published on August 27, 2025
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