India Poised to Capitalize on New US Tariff Opportunities

US President Donald Trump's new tariffs on various Asian and European countries present a strategic chance for India. With lower tariffs compared to other nations, India's textile, electronics, and semiconductor sectors stand to gain significantly, bolstering its role in global trade and manufacturing.

Recent US trade policy changes, driven by President Donald Trump, have ushered in an era of higher reciprocal tariffs on goods from Asian and European countries, such as China and Vietnam. Ajay Srivastava, founder of GTRI, sees these developments as advantageous for India.

For Indian exports, the United States imposes a 25% tariff on steel and auto-related sectors, with pharmaceuticals and semiconductors exempt. Most other goods face a 27% tariff. This is relatively lower compared to tariffs on goods from countries like China, which face rates as high as 54%.

India's competitive edge extends to the textile and electronics sectors. The textile industry, with tariffs on Chinese and Bangladeshi goods, could increase its U.S. market share. Initiatives like the PLI scheme position India as a hub for electronics manufacturing. The overall policy shift could attract vital investments and enhance India's presence in global supply chains.

(With inputs from agencies.)