Udaipur, April 4, 2025: The US Tariffs have become the talk of the business world across the globe and Udaipur is not immune from the fallout of the US tariffs and the aftermath.

As per reports, approximately Rs 3600 Crore worth of exports to the US is accounted for by Udaipur based industries. Udaipur's export statistics highlight its role as a gateway for goods from southern Rajasthan, with a focus on minerals, marble processing, and handicrafts. Businesses dealing in these products for many decades are now wary of the US tariff war set in motion by the Trump administration in the United States. This is specially true for those, whose revenues revolve majorly around exports to the US.

The companies are looking at recheduling their annual operational plans in line with the possible outcomes on their revenue vis a vis the costing that they have worked on till date. Decrease in demand coupled with increasing tariffs will surely make these businesses work around their operations in the current financial year.

Udaipur region and southern Rajasthan boasts of vast resources of marble, stone and minerals and the US, Europe, Africa and Middle Eastern markets receive a large share of these from Udaipur exporters. Additionally, the gems and jewelry plus handicraft market is also having a high export base for all the players, be it a small shop to a large handicraft manufacturer.

The Total Handicraft Export from India in 2024-25 (Excl Handmade Carpets was USD 1.64 Billion. Exports from Rajasthan accounted for USD 127.13 Milion, which is 7.77% of the total Handicraft export from India. Udaipur and Jaipur are the two main locations that are contributing to the export of handicrafts from Rajasthan hence this volume is concentrated in these two regions of the state. Handmade carpets are generally sourced from Jaipur. Rajasthan handmade carpet export to the US in 2024-25 was USD 77.74 million.

To overcome the possible negative fallout, these businesses might look at exploring other markets, which have been ignored or not given much weightage earlier. They might want to look at reducing operational costs through re-engineering their operations. They might want to look at investing in better techology to reduce their costs. Exporters of raw material might want to consider value addition to their product to get better value. These exporters might also want to look at realigning their products to the domestic market, which would get much lesser in revenue in terms of price, but might enhance their overall revenue in terms of volume and mitigate the risk of the tariff war.