Trump tariffs – Reciprocal tariffs: India may gain competitive edge but growth, exports to be hit

For India, it is a bittersweet for India, which hoped for mutual turning tariffs from US mutual tariffs due to continuous negotiations on bilateral trade agreement (BTA). However, US President Donald Trump announced a 27% of the “Discount” reciprocal tariff, which will start on April 9.

Looking more closely at the US Mutual Tariff System shows that India is going to gain competitive advantage compared to China and Vietnam, which, accordingly, slapped by 34% and 46%. Similarly, the United States plans to collect 37% tariff on Bangladesh, and 36% of Thailand. The United States will not prove any tariff on certain significant and strategic items, such as pharmaceuticals, semiconductors, copper and energy products such as oil, gas, coal and LNG. India’s steel, aluminum and automatic products are imported to the United States, to meet 25% tariffs.

Indian government officials who have been closely following US statements during this period are now understood that the influence of this policy is revised. Meanwhile, US Indian exports can gain competitive advantage and can help India slip its production capacity from average to long-term prospects, as well as short-term prospects.

According to sources, how the tariffs will be used, they remain the most important task to understand, and that will eventually affect the common prospects of India. Anxiety also causes a decline in trade in the US economy, which can hit the world economy.

According to EMKAY GLOBAL Financial Services, India’s exports in the United States can drop 30-33 billion dollars or 0.8-0.9% of GDP at 26% tariffs without regulating cross-country hits or answers.

The MacQuarie report noted that by RBI by RBI by RBI in 2024-25, by RBI by RBI, there are 6.5% of GDP forecasts by RBI. “Note that at the moment the pharmacists, semiconductors and several other areas are expected to be signed with us in the year, we must see what the final consequences of GDP say.”

The main investment strategic, GeoJit Investments “Inflation in the United States will make food a solid place. It will be difficult for the back to reduce the expected interest rate on the 2025.

The United States is India’s largest trading partner and the largest export market. According to the Ministry of Commerce, the share of India increased from 0.9% to 2.8% from 2001 to 2023 from the import of the US import.

The GTRI report emphasized that the United States was obliged to strengthen a number of Asian countries, including China, Vietnam, Taiwan, Thailand and Bangladesh, to strengthen its position in global trading and production. “However, profits will not be automatically collected. India needs deep reforms to provide a scale production and to improve competitiveness, “he said.

India could have been gained in areas such as clothing and textiles, such as Bangladesh, as well as electronics in Telecom, and countries like Vietnam and Thailand, which may lose the competitiveness of costs due to our tariffs.