20 Aug 2025
The Indian fastener industry—centered in Ludhiana, Punjab, which accounts for nearly two-thirds of the country’s fastener production—is facing mounting pressure from new U.S. tariffs. The duties, which include a 25% reciprocal tariff combined with an additional 25% penalty, have significantly raised the landed cost of Indian exports, threatening competitiveness in one of its key markets.
The region hosts over 1,500 fastener units, of which nearly 1,000 are based in Ludhiana, producing bolts, nuts, screws, and specialty fasteners critical for industries such as automotive, aerospace, and heavy machinery. Exporters argue that while domestic demand remains stable, international buyers may shift toward suppliers in Vietnam, Taiwan, and Eastern Europe, where tariff barriers are lower.
Industry associations warn that sustained tariffs could lead to a 20–25% decline in export orders, with potential ripple effects including job losses among the 50,000+ workers employed directly and indirectly by the sector. Smaller units, already burdened by rising steel prices and currency fluctuations, are expected to be the hardest hit.
Manufacturers are now lobbying for government intervention, urging bilateral trade negotiations and incentives to help the sector diversify markets. Experts believe that unless relief is provided, the tariffs may accelerate consolidation in the industry, with smaller players shutting down or merging to survive.
Source: Times of India – Fastener industry braces for impact of US tariffs (Aug 2025)