US Tariffs Threaten India's Export Market: A Deep Dive into Trade Dynamics

India's merchandise exports to the US are expected to decline significantly by USD 5.76 billion due to increased American tariffs. While high-value goods like energy products remain unaffected, sectors such as electronics and seafood will see substantial losses. The GTRI analysis details the impact on various product categories.

A recent data analysis by the Global Trade Research Initiative (GTRI) anticipates a substantial decline in India's merchandise exports to the United States, estimated at USD 5.76 billion, due to heightened American tariffs. Sectors including marine items, gold, electrical, and electronics are predicted to be the most affected.

Despite the challenges, India's competitive edge in certain product segments, like textiles, ceramics, and pharmaceuticals, might offer some relief. However, industries such as seafood, electronics, and automobiles are expected to witness significant repercussions from the increased duties.

The Delhi-based think tank also highlights that while some high-value items are exempt from country-specific tariffs, the extensive hike in tariffs across other industries is likely to alter trade dynamics significantly, potentially impacting a wide range of sectors and India's positioning in the global export market.

(With inputs from agencies.)