India's Export Sectors Grapple with Rising US Tariffs

India's telecom, agriculture, and textile sectors are significantly impacted by rising US tariffs under President Trump. A report by EY highlights the need for strategic policies and bilateral trade agreements to counterbalance tariff hikes and maintain India's competitive advantage over countries like China and Vietnam.

India's export sectors are reeling under the strain of elevated tariffs imposed by the US administration under President Donald Trump's policies, according to a report by EY.

The report reveals that the telecom sector has witnessed a dramatic increase in tariffs, escalating from 0 per cent to 26 per cent as of April 2025. Despite these challenges, India's telecom exports, valued at USD 6 billion, still compete favorably against countries such as China and Vietnam, which face even steeper duties.

For the agriculture sector, tariffs surged from 4 per cent to 31 per cent, affecting USD 5.5 billion worth of exports. This poses a significant challenge to India's competitiveness in the American market. EY emphasizes the urgency of initiatives like the Mission 500 and expediting the US-India Bilateral Trade Agreement (BTA) to overcome these impediments.

The report further draws attention to the auto components sector, with exports now facing a 25 per cent duty. Despite the uniform imposition on all exporting countries, India is seeking concessions in trade talks.

Meanwhile, the textile sector confronts tariffs ranging from 33 per cent to 36 per cent on USD 9.5 billion worth of exports to the US. Although this marks a significant hike, India maintains a competitive edge over rival exporters like China, Vietnam, and Bangladesh. The report concludes that while the increased tariffs present substantial challenges, India's robust manufacturing and strategic policy initiatives can sustain its competitive stature.

(With inputs from agencies.)