India Faces Potential $6B Hit to Exports as U.S. Tariffs Rise; Could Soar to $31B: Emkay
New Delhi [ India ], March 29 (ANI): India might witness an approximate reduction of about US D $6 billion, or 0.16 percent of its GDP, in exports to the US If comprehensive tariffs of 10 percent are implemented, Emkay Global, a research and investment company, stated in their recent report.
The financial services firm stated in the report that the effect might rise considerably, potentially hitting as high as US D $31 billion if tariffs increase to 25 percent.
Although the details of reciprocal tariff actions are still unclear, a comprehensive country-wide tariff measure remains under consideration. India It seems to be the most plausible scenario, the report also noted.
Even though there could be repercussions in vital industries like automotive, pharmaceuticals, and electronics, the report emphasizes that India The sectors most at risk include clothing and gemstone/jewelry manufacturing.
Moreover, the report proposes possible "quick gains" in tariff talks, like increased imports of energy and defense products, which might offset certain losses.
We recognize these 'Quick Gains' as: i) boosting crude oil and natural gas imports. US , ii) enhance defense acquisitions and collaboration, iii) decrease tariffs on specific agricultural and food products, and iv) cut tariffs on imported electric vehicles," the report stated, adding that India ought to engage in talks with the US By providing concessions in certain crucial areas, this could benefit foreign relations without negatively impacting local businesses, yet they are
crucial from a political and economic standpoint for Trump, as compensation for reducing tariffs in other areas.
The document further states that the wider US A tariff war extends beyond mere trade policy, aiming at China which is expected to remain a target. It further suggests that India The opportunities arising from this war are limited.
" India has failed to capture global market share in the less skilled sectors that China abandoned after Covid, and China focuses on exporting more sophisticated goods. India (Seventy-five percent of China's exports to the global market are complex compared to forty-five percent for) India ), offering only scarce chances for India ," the report added.
Starting from April 2, the Trump administration plans to introduce reciprocal tariffs on trade partners under what they call the "Fair and Reciprocal Tariff Plan."
In other news, Arvind Virmani, a member of Niti Aayog, stated that bilateral trade between India and the US is expected to be finalized by the end of the year.
On March 29, meanwhile, the US President Donald Trump stated that the tariffs will likely have a positive outcome between New Delhi and Washington, D.C., expressing optimism about the result. (ANI)