India's Rising Role Amid Global Tariff Shifts

India's lower tariff exposure may attract global manufacturers, boosting industrial and warehousing needs. However, challenges like higher freight costs and stricter compliance could disrupt sectors like electronics. With strategic reforms, India can become a global manufacturing and logistics hub, despite ripple effects from US tariffs.

India's relatively lower tariff exposure, compared to other markets, presents an opportunity for the country to attract global manufacturers, potentially boosting demand for industrial and warehousing infrastructure. However, the Trump Administration's reciprocal tariffs are expected to cause ripple effects across economies, particularly impacting export-dependent industries, according to logistics industry experts.

Anshul Singhal, Co-founder and Managing Director of Welspun One, emphasized the necessity for strategic policy measures, enhanced supply chain resilience, and recalibrated export strategies to capitalize on this emerging shift. While India's Grade A warehousing sector, driven largely by domestic consumption, is likely to remain resilient, industries such as electronics, textiles, and gems may face potential disruptions.

Higher freight costs, extended customs clearance times, and stringent compliance requirements could decelerate trade flows, affecting cargo volumes on US-bound routes and pressuring fleet utilization. This scenario may propel exporters toward short-term warehousing solutions and encourage a transition from air to sea freight as a cost-management strategy. With adept economic reforms, India has the potential to transform these challenges into opportunities, further establishing itself as a global manufacturing and logistics hub.

(With inputs from agencies.)