New twist in Trump tariff policy can give India a breather

India may not be severely impacted by Trump’s reciprocal tariffs set for April 2, as the specifics remain uncertain. Treasury Secretary Scott Bessent suggested potential delays and negotiations, giving India a chance to reach a trade deal and possibly avoid the tariffs.

India seems to be preparing for US President Trump’s upcoming tariffs on imports by partnering with Elon Musk’s Starlink Inc. The Modi government is shifting its trade approach to appease the US, potentially disadvantaging local industry giants who have thrived under protectionist measures.

India is considering shifting the sourcing of certain products from countries like Turkey, New Zealand, and China to the US in an effort to reduce its trade surplus with the latter. This move is part of ongoing negotiations for a trade deal and aims to increase trade engagement between the two nations.

Exports of auto components and medical instruments from India have shown strong growth over the past three years. Auto parts exports rose significantly to $7.7 billion in FY24, while medical instruments exports reached $2.43 billion, highlighting India’s increasing global market presence and reduced dependence on imports.

India and Malaysia have agreed to expedite the review of the Asean India Trade in Goods Agreement (AITIGA) for a substantial conclusion by 2025. Both sides also discussed bilateral trade, market access, and other areas of cooperation. A joint committee meeting is scheduled for April 9-11, aiming to advance the review process this year.

The government is addressing trade restrictions with the EU and focusing on sectors like Agri-food, APIs, and Clean Technologies. Aiming for a fair Free Trade Agreement, it also highlights the importance of imports from China for various industries and introduces stringent quality controls to curb sub-standard imports.

India and the EU should collaborate to address non-tariff barriers and align standards to ease trade, amid global economic uncertainties, said Jitin Prasada, India’s minister of state for commerce and industry. He emphasized the need for Europe to diversify its supply chain and highlighted India’s large talent pool in sectors like IT, engineering, healthcare, and […]

India’s merchandise exports decreased by 10.9% in February, marking the sharpest decline in 20 months due to subdued global demand and a high base effect. Imports also dropped by 16.3%, leading to a reduced trade deficit of $14 billion, the lowest in 42 months.

Slovenia’s potential involvement in the IMEEC could position Port Koper as a vital trade route between India and Central/Eastern Europe. Slovenian Minister Tanja Fajon highlights direct shipping links, potential economic benefits, and support for a Free Trade Agreement between the EU and India. SITE initiative collaboration aims at sectors like renewable energy, space, and food […]

Moody’s Ratings warns that US tariffs pose risks to South and Southeast Asian companies, notably in automotive, steel, and chemicals sectors. Indian IT giants like TCS and Infosys are well-positioned despite potential US immigration policy changes. Vehicle export impacts are limited, with most mining and energy firms unaffected.