India's Export Strategies Under Trump's Tariff Blow

In a significant blow to India's export industry, the Indian Council for Research on International Economic Relations (ICRIER) has revealed that 70% of India's goods exports to the US, estimated at USD 60.85 billion, are now subject to a 50% tariff under the Trump administration. The report, titled 'Navigating Trump's Tariff Blow' and authored by Ashok Gulati, Sulakshana Rao, and Tanay Suntwal, highlights how these tariffs impact crucial sectors such as textiles, gems, and agriculture.

The protectionist measures are reportedly causing significant disadvantages for India's textiles and apparel sector, which faces a tariff gap exceeding 30 percentage points compared to competitors like Bangladesh and Vietnam. Similar challenges impact the gems and jewellery exports amounting to USD 11.9 billion, with stiff competition from suppliers in Turkey and Thailand. The ICRIER report stresses that these industries are vital for employment and livelihoods in India.

ICRIER recommends a strategic response: engage in smart negotiations to alleviate impacts, offer immediate relief to affected sectors, and diversify export markets to mitigate risks. The report underscores the importance of positioning India as a dependable player in the global economy amid these challenges.

(With inputs from agencies.)