US Tariffs Threaten India's Export Economy
US President Donald Trump's new tariffs on Indian goods threaten to reduce India's exports to the US by 30%, according to GTRI. Key sectors affected include garments, jewellery, and metals, while pharmaceuticals and petroleum remain exempt. Strategies like reviving the Interest Equalisation Scheme are proposed to mitigate impacts.
- Country:
- India
The latest tariff hike by US President Donald Trump is poised to significantly impact India's export economy. According to the Global Trade Research Initiative (GTRI), the 25% duty on Indian goods could see exports to the US plummet by 30% to $60.6 billion.
To combat these challenges, stakeholders suggest reviving the Interest Equalisation Scheme to provide relief to exporters. Additional measures include strategically leveraging trade agreements and offering support to new exporters. Meanwhile, the new tariff regime largely spares pharmaceuticals and energy products, yet sectors like garments and jewellery face steep competition.
Industry experts express concern over the potential long-term impacts on India's export market share, urging the government to adapt swiftly. With garments facing nearly 39% in duties and jewellery exports encountering a 27.1% tariff, India's competitive edge is under threat, especially compared to Vietnam and Bangladesh.
(With inputs from agencies.)
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