Bhubaneswar: While Odisha’s economy is heavily diversified, with a major focus on minerals and metals, a 50% US tariff would have specific and severe impacts on some of its key export sectors.
The state’s export portfolio, while dominated by metallurgical products, includes significant contributions from other industries that are highly vulnerable to such a drastic increase in tariffs.
Here are specific references to Odisha’s exports that would be impacted:
Marine Products (Frozen Vannamei Shrimp): This is arguably the most vulnerable sector. The US is a primary destination for Odisha’s marine exports, with over 30% of the state’s shrimp consignments headed there. In 2024-25, the value of marine products exported from Odisha to the US was $170 million, with frozen Vannamei shrimp accounting for 99.5% of this.
A 50% tariff would make this product nearly uncompetitive against lower-cost alternatives from countries like Ecuador. The industry operates on very thin profit margins, and this tariff would render it unviable, threatening thousands of jobs across the supply chain, from aquaculture workers to processors and transporters.
Handloom and Textiles: Odisha is renowned for its handloom and traditional textiles, such as Sambalpuri and Ikat. While not as large a share of total exports as minerals, these products have a growing international market, including in the US.
A 50% tariff would significantly increase the final price for American consumers, potentially stifling demand for these artisanal products and harming the livelihoods of weavers and artisans who depend on these exports.
Other Products: While less prominent in the export basket, other sectors in Odisha could also be affected. The state also exports certain agricultural products, like rice, and has a growing food processing industry.
Additionally, a blanket tariff could impact smaller-scale exports of handicrafts and other goods that are part of the state’s diverse economy. The state’s MSMEs, which often have limited capital, would be particularly susceptible to the negative effects of a sudden and substantial increase in export costs.