The Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA) is appealing to both the state and central governments for support measures to help industries maintain competitiveness in the face of proposed tariffs from the United States. The request comes amidst concerns that a 50% tariff hike by the U.S. on Indian goods will negatively impact several sectors in Maharashtra.
MACCIA has proposed several fiscal incentives, including extending schemes like Remission of Duties on Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) to industries. They are also advocating for easy credit schemes, such as interest subsidies for Micro, Small, and Medium Enterprises (MSMEs) and other exporters, alongside reducing compliance burdens by simplifying advance authorization rules and lowering port charges. The industry body emphasizes the importance of helping exporters explore new markets through incentives and facilitating overseas warehousing and global branding initiatives to enhance the competitiveness of products in international markets.
The Maharashtra government has responded by inviting MACCIA to a meeting with stakeholders to discuss strategies for mitigating the impact of the tariffs. Previously, the state had initiated discussions with industry bodies to consider measures like removing cross-subsidy in power, lowering or providing rebates on water charges for industries, and exempting or reimbursing State GST dues to companies.
MACCIA President Lalit Gandhi has communicated to the state government that the tariffs could significantly impact textile hubs such as Solapur, Ichalkaranaji, and Malegaon, as well as Pune's automobile industry. The pharmaceutical sectors in Mumbai and Aurangabad, which export large volumes of generic medicines to the U.S., are also expected to be affected. Other sectors like electronics, solar energy, and gems and jewelry may also face adverse consequences.
The call for government support comes as industries in Maharashtra are already facing challenges due to rising electricity tariffs. A recent hike in industrial electricity tariffs by Mahavitaran, following a new multi-year tariff order by the Maharashtra Electricity Regulatory Commission (MERC), is expected to increase the cost of electricity per unit by ₹1 to ₹1.30. This increase is likely to put a strain on small-scale businesses, particularly those dependent on high-voltage and low-voltage electricity. Concerns have been raised that the power loom industry, especially in textile hubs like Ichalkaranji, Bhiwandi, Malegaon, Sangli, Vasai, Thane, Palghar, and Solapur, will be the worst hit. The Maharashtra Electricity Consumers Association has warned that the tariff hike could threaten the survival of the existing power loom industry, potentially leading to widespread job losses and a severe impact on the state's economy.
To alleviate the financial burden on industries, the Maharashtra government offers industrial subsidies. These subsidies include interest subsidies on term loans for MSMEs to purchase fixed assets, and subsidized power tariffs for a maximum of three years, with further discounts in less developed regions. The Maharashtra Industrial Subsidy Scheme also supports green development through subsidies on water and energy audits, as well as the cost of equipment for water conservation.
The Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) has also sought the central government's intervention to protect businesses and provide relief measures in response to the new U.S. tariffs. The FJCCI noted that the tariffs have created an "atmosphere of uncertainty" in global trade and could have direct and indirect effects on industries in Jharkhand.
