India Poised to Benefit Amid US Tariff Challenges

The US reciprocal tariff plan is unlikely to affect India significantly and may bring new opportunities for the country. India, compared to Mexico, China, and Canada, is better positioned in the US market. The country can capitalize on its textile strengths and geopolitical shifts to enhance trade.

As the United States gears up to impose reciprocal tariffs, Niti Aayog's Programme Director Pravakar Sahoo believes India stands to gain opportunities rather than face significant impacts. While competitors like Mexico, China, and Canada dominate 50 percent of American imports, India's smaller share in these sectors shields it from potential tariffs.

An in-depth evaluation of the reciprocal tariff's influence on India is awaited in the forthcoming edition of Niti Aayog's quarterly trade watch report. Sahoo underscores that India's strategic position will allow it to capitalize on the situation, particularly in the textile sector, where it can expand its presence as a reliable alternative for global buyers.

U.S. President Donald Trump's decision to impose import duties on steel, aluminium, vehicles, and auto parts from key trading partners, including India, highlights a changing global trade environment. Despite challenges, India's trade strategies and alliances with the U.S. and other major economies promise growth avenues beyond current projections.

(With inputs from agencies.)