India's Strategic Pause Amid US Tariff Tensions

India remains cautious in response to the US imposing additional import duties on over 60 countries. While some export sectors like shrimp may face challenges, others like pharma and electronics might see opportunities. The Indian government plans to observe and engage with industry stakeholders before making strategic decisions.

India is adopting a cautious stance following the United States' decision to increase import duties on over 60 countries, a move that has significant implications for global trade. The announcement, made by US President Donald Trump, includes tariffs ranging from 11-49 percent, affecting nations like India and China starting April 9.

Government sources in India suggest that this development brings both challenges and opportunities. While sectors such as shrimp and carpets may be adversely affected by the 27 percent tariff, industries like pharmaceuticals and electronics could benefit as competing countries face higher duties. Officials emphasize the need for patience, noting that the US domestic market might also feel the repercussions.

India, which had a trade surplus of USD 35.32 billion with the US in 2023-24, is closely monitoring the situation. The country's commerce ministry is engaged in consultations with stakeholders and line ministries to assess the impact while recognizing prospects arising from exemptions and mixed scenarios across various exports. Stakeholder feedback will guide India's responsive strategies.

(With inputs from agencies.)