India Set to Thrive as US Tariff Shake-Up Reconfigures Global Trade

The US's new tariff policy exempts essential items but imposes higher duties on several Asian countries. This could enable India to strengthen its position in global trade, contingent on improving its business environment. Key sectors like textiles, electronics, and semiconductors stand to benefit significantly from this shift.

The United States announced a new tariff policy, exempting strategic items like pharmaceuticals and energy products from a 27% import duty, according to think tank GTRI.

America's protectionist stance could serve as a catalyst for India to gain from reshuffling global supply chains. However, GTRI emphasizes that India must enhance its business environment, improve logistics and infrastructure, and stabilize policies to fully leverage these opportunities.

Higher tariffs imposed on Asian countries like China and Vietnam present India with a competitive advantage, especially in textiles and electronics. Lower duties open avenues for India to become a key manufacturing and export hub, contingent upon deep reforms for scale production and competitiveness.

(With inputs from agencies.)