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VOL. 13, ISSUE 1 (2026)
A Study on disruption in India’s Supply Chain due to the US trade tariff hike
Authors
Dr. Champa Ramkrishna Parab
Abstract
The study examines how the 2025 tariff increase in
the US, rising cumulatively to 50%, will disrupt India's supply chain with
specific attention to the MSME (micro, small and medium enterprises) sector.
The study uses secondary data derived from trade reports, government
publications, and sectoral studies to analyze the level of disruption in
India's major export categories (textiles, gems and jewellery, engineering and
chemical products), all of which have a strong presence in the MSME ecosystem.
The study finds that sectors that are most reliant on price competitiveness and
are labour-intensive declined sharply in export orders (20 to 40%) between May
and September 2025 resulting in factory closures, unemployment, and reduced
foreign exchange inflows. The sectors that were considered 'strategic'
(electronics and pharmaceuticals) that were not constrained by tariffs
maintained a stable position. The implications of the research suggest that
there are structural weaknesses in India's MSME-led supply chains and raises
the need for investment in diversification, financial support, and trade
initiatives.
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Pages:206-210
How to cite this article:
Dr. Champa Ramkrishna Parab "A Study on disruption in India’s Supply Chain due to the US trade tariff hike". International Journal of Multidisciplinary Research and Development, Vol 13, Issue 1, 2026, Pages 206-210
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