Maha CM Fadnavis reviews potential impact of US tariff hikes

Mumbai, August 7 (IANS) Maharashtra Chief Minister Devendra Fadnavis, on Thursday, held a preliminary meeting with his Chief Economic Advisor, Praveen Pardeshi, to discuss the potential impact of the increased tariffs imposed by the US.

Several department secretaries were present at the meeting.

Satyanarayan Kothe from the Mumbai School of Economics and Economist Rishi Shah were also present.

"During the meeting, it was agreed to initiate discussions with the Union government immediately to seek guidance to protect interests of industries and employment in Maharashtra," the Chief Minister said.

He reiterated that the state government is committed to safeguarding the interests of the industries and the economy in the state.

Chief Minister Fadnavis said, "Preliminary discussions were held on important issues such as GDP, employment, trade, among others. There is a need to study the possible impact of the US tariff policy on the export-oriented industries of the state, as well as its impact on competitiveness in the global market."

CM Fadnavis' decision to hold a meeting to assess the likely impact of 50 per cent tariff by the US is important as Maharashtra is the second highest exporting state from India in Financial Year 2023-24 with Rs 5.56 lakh crore exports which is 15.37 per cent of the total exports from India.

Of the Rs 5.56 lakh crore exports, Maharashtra's exports to the US was reported at Rs 111,762 crore.

According to the state government data, the top five exporting districts from the state are Mumbai Suburban, Mumbai City, Pune, and Thane, contributing 74 per cent of the state's total exports.

The top 10 importing countries form the state are the US, the UAE, Hong Kong, Belgium, the UK, China, Italy, the Netherlands, Germany and Mexico.

Top export products from Maharashtra are pearls, precious and semi-precious stones; drug formulations/biologicals; gold and other precious metal, jewellery; motor vehicles and cars, and iron and steel.

--IANS

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