India's Path to Trade Resilience Amid US Tariff Challenges
As India's exports face new US tariffs, former Labour Secretary Sumita Dawra suggests strengthening market diversification and leveraging service strengths. Dawra highlights potential growth in other regions, emphasizing digital economy partnerships and developing India's capability center hub to counter potential trade disruptions.
- Country:
- India
India is grappling with trade challenges as the US imposes new tariffs on its goods. Sumita Dawra, former Labour Secretary, calls for swift diversification and maximizing India's service sector strengths to maintain economic momentum.
President Trump's announcement of a 25% tariff on Indian exports dampened hopes of an interim trade deal. With the government assessing its impact, Commerce Minister Piyush Goyal vowed to protect national interests.
Dawra underscores the need for a robust regional trade network, particularly through initiatives like BIMSTEC, while promoting technology-driven solutions such as UPI for regional commerce. Emphasizing India's unwavering service export capabilities, she advises capitalizing on sectors like edtech and telemedicine.
Dawra advocates replicating pandemic-era decision-making frameworks to foster rapid economic adaptations. Highlighting India's domestic economy and skilled labor force, she projects current challenges as a pivot for substantial growth. Ongoing trade talks promise clearer outcomes by August's end.
(With inputs from agencies.)
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