As the Indian equity markets panic turn and exporters brace to kick for the “Liberation Day” tariff of US President Donald Trump, the question is – will it be as rigid as it would be afraid? Despite the forecasts of despair, practicality is important.
Trump has imposed a flat 26% tariff on Indian exports in the US, besides 10% basic duties applied to all countries. The latter came into force on 5 April and the country-specific duties will be live on Wednesday.
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The worst effect will be felt by fear of electronics, gems and jewelery areas, experts. But this effect will be limited and short -term due to the country’s medium stake in global exports. Sources said that the impact of tariffs on competitive economies is another aspect that can benefit India.
Benefits of India?
The US has imposed high tariffs against countries such as China, Vietnam and Indonesia – which compete with India in the export sector – and Indian exporters will benefit from it, sources said. He said that India’s first mover is the benefit as it is the only country that has launched talks with the US for bilateral trade agreement.
China, a major manufacturing center that fulfills the world, has retaliated by trump tariff by imposing 34 percent duty on the US. But India did not take any such step. Sources said that it was an intelligent drama that gives India an edge in business talks.
He also said that after taking over in January, Trump had sent the US to India only to talk on tariffs. India and the US are now trying to accelerate bilateral trade agreement which will be mutually beneficial and according to the Ministry of Commerce, the supply chain will cover several issues, including deepening integration.
India is interacting with seven countries for a free trade agreement and business talks will soon begin with Bahrain and Qatar, stating that such deals will solve tariffs tangal. New Delhi will also get new markets for its marine and jewelery products and other areas affected by tariffs, he said.
Should exporters be afraid?
According to a report by the National Stock Exchange (NSE), India’s share in global exports doubled between 2005 and 2023. It was 2.4 percent in 2023. The share of goods exports was 1.8 percent and the export of services was 4.3 percent.
Ranjit Mehta, CEO of the PhD Chamber of Commerce and Industry (PHDCCI), said, “America is the largest economy in the world and their global multi-sector tariffs will have immediate impact on our exporters, but India has no major share in global exports, so it will not affect us long-term.”
The industry body assesses tariffs on Indian exports, the country’s price can affect only 0.1% of GDP due to competition and subsidiary government policies.
PHDCCI President Hemant Jain said, “The government will support the development flexibility of India, PLI, Make in India, and self -reliant India, among others,” said, “Between others.”
‘New business models will emerge’
At the same time, tariffs will provide an opportunity to Indian exporters to expand their footprints, Mr. Mehta said, pointing to “” “” “and said that” he said “Apada me avsar“Call to find opportunities between challenges during the Kovid epidemic.
“New business models and policies will emerge from this global tariff war. Even during a global disaster like epidemic, India managed to find opportunities,” said Mr. Mehta.
Diversification and innovation will be important which will maintain Indian exporters despite challenges. Mr. Mehta suggests that India should seek new opportunities and adapt to the changing landscape.
“India is a huge market of 1.4 billion people. Our consumption is very large. India is still the fastest growing economy in emerging markets. But we should look at new opportunities and create new models. We have to create a new ecosystem that will help us to make our products more innocent and useful,” he said.
Opportunities of $ 50 billion
The Federation of Indian Export Organization (FIEO) is expected to increase more than $ 50 billion for Indian vendors due to tariffs. “We assess that in the next two to three years, Indian exporters will get a market opportunity of over $ 50 billion in the international market due to the mutual tariff imposed by the US,” Fieo CEO Ajay Sahai told NDTV.
Ajay Srivastava, the founder of Think-Tank Global Trade Research Initiative (GTRI), also said that tariffs present a strategic opportunity for New Delhi to promote their presence in global trade and manufacturing. The textile industry can benefit from this. He said that high tariffs on countries like China and Bangladesh may allow Indian apparel manufacturers to get market share.
He said that high tariffs can put Vietnam and Thailand on the back foot and India – with initiatives such as production -Linked Incentive (PLI) scheme – can help domestic electronics manufacturers in a better position in global markets. Similarly, Taiwan has the ability to emerge as a preferred destination for semiconductor manufacturing, with the US facing high tariffs.