India's Resilience Amid US Tariff Hikes: A Strategic Response

The US's recent 50% tariffs on textiles, chemicals, and machinery may initially hinder India's exports. However, the Commerce Ministry assures that long-term trade impacts will be limited. The government is advancing the Export Promotion Mission and exploring e-commerce to boost market access amid calls for strategic responses akin to COVID-19 measures.

The Commerce Ministry announced on Thursday that the US's new 50% tariffs will temporarily hamper India's export sectors, particularly textiles, chemicals, and machinery. However, officials predict the long-term effects on overall trade and GDP will be minimal and manageable.

Commerce Ministry representatives acknowledged that trade bodies are worried about liquidity issues linked to reduced orders and delayed payments. There are calls for government measures akin to those used during the COVID-19 pandemic to counter these financial hurdles. Efforts are underway to implement industry suggestions.

The government is prioritizing the Export Promotion Mission to mitigate the tariff hike's impact. Officials view this as a chance to strengthen global supply chains and advocate for export diversification by product and geography. Meanwhile, India is also enhancing exports through e-commerce, seeking new market opportunities.

(With inputs from agencies.)