US Tariffs Signal Geopolitical Shift and Challenge for Indian Exports
The US's imposition of a 50% tariff on Indian exports, linked to India's discounted Russian oil imports, is seen as geopolitical rather than economic. Prof. Trilochan Tripathy views this as hegemonic rather than neutral, challenging India's export competitiveness but highlighting the country's diversification and global trade relations as buffers against disruption.
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The United States has imposed a 50% tariff on Indian exports in response to India's discounted imports of Russian crude oil, in a move experts see less as economic policy and more as geopolitically motivated. Professor Trilochan Tripathy from XLRI Jamshedpur calls it a form of hegemonic arm-twisting that disrupts bilateral trade.
This escalation could significantly impact India's economy, with import duties on Indian goods rising to 50%, while tariffs for competitors are between 15-20%. India, however, remains resilient, having diversified its export base and strengthened trade ties globally, though sectors like textiles and engineering are particularly vulnerable.
Tripathy highlights potential negative impacts on US firms, including increased input costs and disrupted supply chains. Despite challenges, India's strategic trade diversification and initiatives like Make in India offer pathways to mitigate these tariffs' effects, aiming to reduce the nation's export dependence on the US.
(With inputs from agencies.)
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