“It will obviously be a negative sentiment impact on the market and if you look at India’s exports to the United States, the big numbers really come from auto and industrial components, number one,” says Manishi Raychaudhuri, Veteran Investor In Asian Equities.Not turning out to be a great morning for the Indian markets rather and a lot of these sectors that is seemed to be a bit concerning. So, firstly, help us understand that this 25% tariff implication on which sectors it could really weigh heavy and at least we can have some impact on the earnings as well.
Manishi Raychaudhuri: Let me make a couple of points. First, we must understand that at this stage we do not have any details. We do not have any details about the exemptions for example. Are pharmaceuticals exempted from this 25% as they were during the April reciprocal tariffs, number one. Are electronic goods which in many parts of the world with other trade partners of the United States are exempted, are they exempted for India as well? We do not know. So, many of these details would possibly emerge going forward. And not only that, we do not even know whether this arrangement is permanent or not because after all the talks are still ongoing. President Trump himself said that there are more rounds of talks to be had. There is a sixth round going to happen in late August. So, the situation is still fluid. It will obviously be a negative sentiment impact on the market and if you look at India’s exports to the United States, the big numbers really come from auto and industrial components, number one. Number two, on pharmaceuticals which is about 8 to 9 billion and of course, garments and other leather goods and so on. So, those are the sectors that come to my mind which would possibly the most negatively impacted for now. I would caution about actually doing the numbers at this point of time because as I said, we do not really know what is baked into these announcements.
Manishi Raychaudhuri: Let me make a couple of points. First, we must understand that at this stage we do not have any details. We do not have any details about the exemptions for example. Are pharmaceuticals exempted from this 25% as they were during the April reciprocal tariffs, number one. Are electronic goods which in many parts of the world with other trade partners of the United States are exempted, are they exempted for India as well? We do not know. So, many of these details would possibly emerge going forward. And not only that, we do not even know whether this arrangement is permanent or not because after all the talks are still ongoing. President Trump himself said that there are more rounds of talks to be had. There is a sixth round going to happen in late August. So, the situation is still fluid. It will obviously be a negative sentiment impact on the market and if you look at India’s exports to the United States, the big numbers really come from auto and industrial components, number one. Number two, on pharmaceuticals which is about 8 to 9 billion and of course, garments and other leather goods and so on. So, those are the sectors that come to my mind which would possibly the most negatively impacted for now. I would caution about actually doing the numbers at this point of time because as I said, we do not really know what is baked into these announcements.