Potential US Tariffs Pose Mixed Impact on India's Trade Sectors: Insights from Economic Expert
Ajay Srivastava from the Global Trade Research Initiative discusses potential US tariffs on India, highlighting the varying effects across sectors. He anticipates impacts on pharmaceuticals and electronics, while a comprehensive trade deal is complicated by agricultural concerns. Upcoming trade announcements will reveal further details.
- Country:
- India
In a significant development, President Donald Trump's threat to impose a 20-25% tariff on Indian goods is expected to have diverse impacts on various sectors, according to Ajay Srivastava, founder of the Global Trade Research Initiative. In an interview with ANI, Srivastava elaborated on the sector-wise effects of these potential tariffs.
The possible tariffs could hit sectors like pharmaceuticals, where Indian generics might remain competitive against European high-end medicines, and electronics like smartphones, which may face challenges compared to Chinese exports. Srivastava pointed out that while petroleum exports might remain unaffected initially, the full picture will emerge post-August 1 announcement.
Srivastava also addressed the complexities surrounding the India-US trade deal, with US demands clashing against India's need to protect its agricultural and dairy sectors. This tension might prevent the finalization of a trade agreement, as other nations could demand similar concessions. Nonetheless, Srivastava dismissed claims that the India-UK FTA sets a precedent, indicating significant differences in negotiation topics between India and the US.
(With inputs from agencies.)
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