Subdued mood at Thai festival as Queen Mother Sirikit mournedーNHK WORLD-JAPAN NEWS

Key Concepts

• Loy Krathong Festival: A traditional Thai festival of gratitude to the goddess of water.
• Queen Sirikit: Former Queen of Thailand, mother of the current Thai King, known for promoting Thai silk.
• US Tariffs on India: Increased import duties imposed by the US on Indian goods, specifically citing India's purchases of Russian oil.
• Hand-knotted Rug Industry: A significant export industry in India, particularly in the city of Badi.
• Diamond Processing Industry: A major sector in Surat, India, responsible for a large portion of global diamond cutting and polishing.
• Trade Negotiations: Ongoing discussions between India and the US to resolve tariff disputes.

Loy Krathong Festival Tempered by Royal Mourning

The traditional Loy Krathong festival, a celebration of gratitude to the goddess of water, was observed across Thailand on Wednesday. This year's festivities were subdued due to the recent passing of Queen Sirikit, the mother of the Thai King, at the age of 93.

During the festival, participants typically float "krathongs" (baskets) filled with flowers, incense, and candles down rivers and onto lakes. While fireworks, singing, and dancing are usual components, they were toned down this year. At a popular riverside shopping mall in Bangkok, many attendees wore black attire and observed a moment of silence. A fashion show was also held, showcasing traditional costumes made with Thai silk. Queen Sirikit had been a strong advocate for the Thai silk industry, promoting it as a strategy to combat rural poverty.

A participant expressed the sentiment of loss, stating, "This has been a tough loss for the Thai people. We are mourning the passing of the queen mother. I see the loyang tradition wearing Thai costumes and floating crothong as a way of expressing our condolences to her majesty."

Impact of US Tariffs on Indian Export Industries

In late August, the US administration imposed steep tariffs of 50% on imports from India, the highest globally. This action was attributed to India's procurement of Russian oil. For India, the US is a crucial trading partner, with exports reaching $86 billion in fiscal year 2024. NHK World's Abishek Julia reported on the significant repercussions for workers and owners in India's export sectors.

Badi: The Carpet City

The city of Badi, known as the "carpet city" for its extensive hand-knotted rug industry, has been severely affected. One company, which previously exported 95% of its carpets to the US, has seen new orders from American partners drop to zero following the tariffs. The company currently has approximately 8,000 carpets in stock. To mitigate costs, the manufacturer has halved the working days for its employees. The owner expressed concern about the tariff's impact on local outsourced workers, noting that in the Badi area, the carpet business is the sole source of livelihood for many villagers. "If you talk about my company I think more than 2,000 weavers are not getting a proper work," the owner stated.

Saddam Hussein, a weaver from a nearby village, confirmed a drastic reduction in orders and worries about his current project being his last. He is considering relocating to cities like Mumbai or Delhi to find any available work.

Surat: The Diamond Processing Hub

The diamond processing industry has experienced even more severe consequences. Surat, in western India, is a global hub for this sector, with three-quarters of the world's diamond cutting and polishing operations taking place there. Chetar Sassla, a diamond polisher with nearly seven years of experience, was laid off after the 50% tariff announcement and received only half a month's salary. While he found alternative employment, his earnings are less than half of his previous salary, making it impossible to pay his children's school fees. "The school administration constantly asks me to pay the fees, but I don't have the money and what else I can do. I pray to God that the disruption due to US tariffs will be fixed soon and all workers can get a good salary for their hard work," he said.

The decline in business performance is the direct cause of layoffs. One diamond processor, which exported half of its products to the US, has had orders put on hold due to the tariffs. Around 400 employees have left the company. The firm's co-owner warned that the company might face bankruptcy within a few years if the situation persists. "Obviously, after one or two months, we have to uh think uh about production cutting more. If this type of scenario like tariffs and all the things will continue in future, I think whole industry will shut down," the co-owner stated.

Trade Negotiations and Future Outlook

Two months into the tariffs, they are increasingly impacting India's traditional industries. Abishek Julia reported from New Delhi that businesses across the board are feeling the effects, with the prolonged situation exacerbating the impact. Companies are reducing staff and cutting back operations. In Surat, buyers were scarce, a stark contrast to its usual bustling atmosphere. The carpet manufacturer is negotiating with its American buyer to share the tariff burden and clear its substantial stockpile.

The governments of India and the US are actively engaged in negotiations. India is demanding the removal of the recent tariffs, deeming them "unfair and unreasonable." Prime Minister Narendra Modi has also indicated that India will not open its agriculture and dairy markets to US products. As discussions continue, India is exploring diversification of its trading partners, including China. US President Donald Trump has referred to India as the "tariff king."

Despite several rounds of talks yielding limited progress, recent days have shown positive signs, with both sides suggesting they may be entering the final phase of negotiations. Experts suggest India could offer concessions such as reducing oil imports from Russia or increasing energy purchases from the US. A resolution is considered vital for maintaining the strong economic and defense ties between the two nations. However, for businesses and workers on the brink, the immediate priority is an end to their economic hardship.

Conclusion

The Loy Krathong festival in Thailand, a time of traditional observance, was marked by solemnity due to the passing of Queen Sirikit. Simultaneously, India's vital export industries, particularly carpet manufacturing and diamond processing, are facing severe economic distress due to the imposition of 50% US tariffs. These tariffs, ostensibly linked to India's oil imports from Russia, have led to job losses, reduced working hours, and financial instability for thousands of workers and businesses. While trade negotiations between India and the US are ongoing, with some signs of progress, the immediate future for these traditional sectors remains uncertain, with many hoping for a swift resolution to alleviate their struggles.