Dubai — Indian exporters are rushing to set up production hubs in the UAE after the US doubled tariffs on Indian goods to 50 percent.
Jewellery and food brands are leading talks with UAE partners for joint ventures, as the higher duties risk pricing them out of the American market. Industry experts say relocating operations to the UAE could cut tariffs to 10 percent if local value addition rules are met.
Consultants in Dubai confirm a surge in enquiries since the tariff hike. “Businesses are recalibrating supply chains, setting up packaging and distribution centers, or forming joint ventures,” said Venkatesh Santhanam of MCA Gulf.
Pharma and technology exports, including Apple’s iPhone shipments from India, remain exempt. Still, the Indian rupee weakened and the Sensex fell by over 1% on Monday in reaction to the new tariffs.
