India benefits from lower reciprocal tariffs compared to China and other competitors, with proposed strategies to protect sensitive sectors. The projected impact on pharmaceutical exports is minimal. Negotiations for a Free Trade Agreement with the UK and support measures for affected exporters are in place, indicating a positive outlook for export growth in the coming fiscal years.

India has emerged as a significant beneficiary in light of the reciprocal tariff situation with the United States, where tariffs are set at 26% for India, compared to 34% for China. The Indian government is actively exploring strategies to safeguard sensitive sectors such as dairy and agriculture amid ongoing international trade tensions. With the US-China trade conflict, India stands to gain economically at the expense of its competitors.

However, some sectors, such as fisheries, may face challenges as Ecuador benefits from lower tariffs. Officials noted that India could offset losses by increasing exports of fisheries products to the European Union. Despite potential challenges, the anticipated impact of new US tariffs on India’s pharmaceutical exports is expected to be minimal, with the US considering tariffs akin to those imposed on steel.

Ongoing negotiations related to a Free Trade Agreement with the United Kingdom are progressing positively, and similar dialogues are being pursued with other nations, including Bahrain and Qatar. In terms of export performance, India’s goods exports in the fiscal year 2025 reached approximately $395.63 billion, and growth in FY25 is projected to surpass that of the previous fiscal.

India’s commerce department is engaging with local exporters to address the challenges posed by the US tariffs, while measures to support affected exporters are being implemented. Officials indicated that the growth rate for FY26 is expected to exceed that of FY25. Overall, India’s export strategies and ongoing diplomatic discussions appear to position the nation favorably despite prevailing tariff pressures.

In conclusion, India is navigating the complexities of US tariffs with adaptive strategies while maintaining export growth. The government’s protective measures for sensitive industries, coupled with ongoing trade negotiations, could mitigate adverse impacts. By capitalizing on the US-China trade conflict and enhancing exports to the EU, India aims to sustain its position within the global trade landscape amidst challenging tariff regimes.

Original Source: m.economictimes.com

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