India's Export Renaissance: Rising Through US Tariffs

In a strategic turn of trade fortunes, India's exports to the United States stand to gain a competitive edge as the Trump administration's tariff hikes on countries including China, Canada, and Mexico open new doors for Indian products. NITI Aayog, in its latest 'Trade Watch Quarterly', highlighted these emerging opportunities.

The report outlines how India could become more competitive in 22 of the top 30 US import categories, signaling a potential rise in market share across sectors such as pharmaceuticals, textiles, and electrical machinery. This development comes as the US enforces increased tariffs on major exporters, allowing India to step in with relative pricing advantages.

NITI Aayog also proposes extending production-linked incentives to labor-intensive sectors and rationalizing electricity tariffs to further boost India's export capabilities. Meanwhile, ongoing negotiations between India and the US aim to solidify a bilateral trade agreement, with a focus on addressing remaining tariff issues and potential sectoral collaborations.

(With inputs from agencies.)