Amul, Parle, Godrej… What’s Indian companies gateway to avoid Trump tariffs? they can…

Indian manufacturers are exploring various ways to avoid paying higher taxes in the US after Trump’s announcement of tariffs of around 50%. Some of India’s leading consumer goods companies like Am

Indian manufacturers are exploring various ways to avoid paying higher taxes in the US after Trump’s announcement of tariffs of around 50%. Some of India’s leading consumer goods companies like Amul and ITC are looking for alternative ways to ship products to the US. 

According to The Economic Times report, they may set up factories in countries with lower taxes, or even establish manufacturing units in the US itself. The move comes after the US increased tariffs on Indian goods.

Parle Products, Godrej To Set Up Factories In US?

Companies like Parle Products, AWL Agri Business, and Godrej Consumer Products also sell products like flour, noodles, biscuits, frozen food, and dairy items in the US, mainly through stores made for the Indians in the country. On Wednesday, US President Donald Trump doubled tariffs on Indian imports from 25% to 50%, which has raised concerns among Indian exporters. The US has a very small share of these companies’ overall revenue but exports to the country have been steadily growing. 

What’s These FMCG Companies Plan?

Amul’s Managing Director, Jayen Mehta, said the company is already producing and selling milk in the US, which is more cost-effective. Now, it is considering manufacturing paneer, cheese, and butter locally instead of shipping them from India. 

There are already tariffs of 60–70%, and now additional tariffs by President Trump will make Indian products more expensive there. This can impact their business in the US, which already depends on the price. 

According to a media report ITC executive said the company might export biscuits, frozen food, prawns, and ready-to-eat products to the US from Dubai. A final decision will be made in a few months, depending on whether the US continues with the higher tariffs on India.

FMCG products are considered as cost sensitive products. Even a marginal increase in price can move customers from one country to another.