It’s not just Indian brands that have been reluctant to import from the USA.
The country’s largest kitchenware maker, Fahey Kitchenware, recently said it would not make any orders for its products from the country, and has pulled out of the US entirely.
Fahey is one of the largest manufacturers of the Paradise, the first and only high-end line of Indian kitchenwares.
In an interview with Quartz, Faherty said, “I am very disappointed to have made this decision because of the challenges of the trade agreements.”
Fahey, which is owned by Indian multinational Tata, is the largest maker of India’s premium luxury brands.
Faherty, who is also the chairman of the board of directors of India-based furniture maker Tata Group, said he was frustrated that the Indian market was not ready for the import of some of the brands.
“It is disappointing to see companies like Fahey and Bose of India continue to import the products of countries that have policies against them.
The quality of the products has to be good,” he said.
The decision is also hurting the local production.
“The products we import are going to be manufactured in India and we don’t want to have the products from countries that are going through this difficult situation,” said Faherty.
The Indian manufacturers have to import a certain amount of materials from the United States, but they have to pay a tariff, which varies from country to country.
“We have to go to the US for the materials and for the equipment.
They have to charge us a lot more for this than we do,” said the chairman.
He said that since the current trade deal is only with the US, the cost of the imported products is going to go up.
“I think it’s the biggest obstacle that we have in our path.
If they don’t do the work, we can’t make our products,” he added.
The companies that have decided to stay away from the world market, and have opted to export, are the ones that have not been given preferential access.
“They are the only ones who can afford to do it.
I don’t think any of the companies are going into the market,” said Shailendra Kulkarni, CEO of New India Kitchenware and Appliances, which has a factory in India.
“All the major brands are not willing to work with us.
We have to export to the world markets.”
The company’s production, he said, is limited to the USA, Canada and Mexico, and imports from these countries are only for the domestic market.
“At the moment, we don´t have any options.
We are going for the most economical export.
It is not possible for us to export into other countries,” Kulkarki said.
“In the US we have a certain number of orders to fulfill and we are not allowed to export.
The US has to decide who gets to make these orders and to whom.”
In the meantime, the company has been facing problems in its supply chain.
The company imports the equipment from the American company Paradis Manufacturing, which it is also partnering with in the future.
“This is not a situation where we have to work in Mexico.
We can make these items in the US if the manufacturers want to do that,” said Kulkar, adding that if the US refuses to sell the items to India, they can easily import them from China.
“You have to sell them from India because India has a very high tariff on imported goods.
It can be as low as $25,” he explained.