At the Startup Mahakumbh panel discussion titled “0-1 in Manufacturing,” Sachin Santhosh, Co-Founder of Scimplify, and Piyush Jalan, Co-Founder of Thimblerr, shared insights on the recent imposition of reciprocal tariffs by the newly elected US President Donald Trump. The 26% tariffs on Indian imports have created widespread uncertainty in global markets, particularly affecting sectors with strong US-India trade ties.
Sachin Santhosh on Market Adjustments Post Reciprocal Tariffs
Sachin Santhosh emphasized that the current scenario is marked by chaos and uncertainty, both in India and globally.”Let me start with a disclaimer: over the past two days, we’ve primarily focused on speaking with our customers in the US to understand how things might unfold. Right now, there’s significant chaos and uncertainty across the board—not just in the US, but also in India, China, and other markets. From our perspective, the situation is nuanced. For example, many chemicals, including those in the pharmaceutical sector, are currently fully exempt from the tariffs. Additionally, a broader range of chemicals remains unaffected. This highlights the critical importance of certain supply chains, which will continue as they are. However, there are segments where tariffs will apply, typically ranging from 15% to 27% on average. These variations reflect the broader implications of the new policy and its impact on different industries,” said Sachin.
Also read: Donald Trump Charges 26% Reciprocal Tariff on India – What are Reciprocal Tariffs?
Santhosh projected a stabilization in the long term as businesses adapt, although the immediate impact would likely increase costs for US consumers. “We view this situation as more of an opportunity, especially given how our journey began. We’re just under two years old, and our story started with a strong focus on manufacturing in India. Now, we’re seeing supply centers in countries like Japan, Indonesia, and Egypt adopting our model. Over the next few weeks and months, we anticipate the emergence of even more alternative supply centers, which will eventually stabilize the supply chain. In the short term, however, there will be increased scrutiny, and the immediate impact is likely to fall on the end customer, who may face higher costs. Consumption in the US is expected to become more expensive, and this trickle-down effect could extend to other parts of the world as well. That said, in the long term, businesses will adapt, and things will gradually return to normal. While costs might remain slightly higher and buying decisions slower, we remain optimistic. For India, this disruption presents a significant opportunity to break through existing inertia and strengthen its position in the global supply chain,” he added.
Piyush Jalan on Opportunities for Indian Textiles
Piyush Jalan provided a perspective from the textile industry, describing the tariffs as a short-term challenge but a long-term opportunity. “From a textile perspective, I’d say that in the very short term, we’re in a wait-and-watch mode—cautious, even slightly hawkish. However, in the long term, this is a pivotal moment for India’s textile industry. Let me provide some context, particularly from a textile standpoint. Even before this, there were developments positioning India as a favorable supply chain partner. For example, the concept of a digital product passport was introduced in textiles. This ensures that products exported to the EU region must have a clear country of origin marked digitally, enhancing transparency. This requirement has already made India an attractive partner in this space. Additionally, in terms of ancillary services like logistics, both ocean and inbound logistics, the government has been actively working to streamline processes. For instance, shipments to the Latin American market, which used to take 140 days end-to-end—including 35 days for inbound and outbound logistics and 60 days for transit—can now be completed in just 80 days. That’s nearly half the original time. With these improvements, India’s textile industry was already gaining traction as a reliable supply chain partner. Indian textile players have steadily become preferred choices for global customers, and this momentum is likely to accelerate further,” he said.
Jalan noted that the geopolitical instability in Bangladesh further strengthens India’s potential to capture a larger share of the global textile market: “Then came these reciprocal tariffs, and against this backdrop, the geopolitical situation in Bangladesh and the country’s overall political climate took a turn for the worse. In the medium and long term, I believe the Indian textile supply chain stands to benefit significantly—not just gaining a small advantage but positioning itself to capture a substantial share of the global industry.”
