Navigating Tariffs: India's Export Prospects in a Shifting U.S. Trade Landscape

India's exports to the U.S. are projected to decline by $5.76 billion in 2025 due to new tariffs, according to the Global Trade Research Initiative. While key sectors may suffer, opportunities exist in textiles and pharmaceuticals, highlighting a complex trade environment amid global competition.

The Global Trade Research Initiative (GTRI) has revealed that India could face a significant decline in exports to the United States by 2025, amounting to a projected loss of USD 5.76 billion or 6.41 percent. This decline is largely attributed to changes in U.S. tariff regulations, impacting various sectors differently.

According to the report, prominent sectors like fish, crustaceans, and iron or steel articles are expected to experience the steepest declines, with export reductions projected at 20.2 percent and 18.0 percent, respectively. Sectors including diamonds, automotive parts, and electronics also appear vulnerable under the new tariff regime.

However, amidst the challenges, there are sectors poised for growth. The GTRI report highlights potential export opportunities in textiles, apparel, and pharmaceuticals as these sectors might benefit from tariff increases on rival countries. The nuanced trade landscape suggests a mixed outlook for India's export strategy moving forward.

(With inputs from agencies.)