India emerges winner in US reciprocal tariff, sees limited impact of pharma tariffs

India emerges stronger in the US-India reciprocal tariffs scenario, negotiating favorable trade agreements and protecting domestic industries against dumping. The country is leveraging its bilateral talks, with New Delhi exploring measures to safeguard sensitive sectors and support impacted exporters amid escalating trade tensions.

India is meticulously negotiating trade agreements in light of US-imposed tariffs, focusing on protecting sensitive sectors like dairy and agriculture. The government aims to prevent goods dumping from countries with steeper tariffs and provide support to impacted exporters. FTA discussions with the UK and other nations are showing good progress.

The India Exim Bank states the US 26% tariff on Indian imports is a mixed bag, benefiting sectors like textiles while impacting others such as automobile and steel. India could leverage this to boost its electronic exports and emerge as a hub for labor-intensive goods. A Bilateral Trade Agreement may reduce these tariffs.

The US revised its reciprocal tariff against India from 27% to 26% among changes for 14 countries. Pharmaceutical, copper, and semiconductor tariffs are expected soon. Experts believe these changes could impact the US economy, potentially slowing growth in 2025 and possibly leading to a recession.

India is optimistic about finalising a Free Trade Agreement (FTA) with the European Union soon. During a recent visit, Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen directed their teams to finalise the FTA within this year. Ongoing negotiations are progressing strongly, aiming to seal the deal by this year.

Indian rice exporters are cautiously monitoring the impact of the new 27% US tariff, though it is expected to be a short-term challenge. Industry leaders believe India’s competitive pricing and strong market presence in West Asia and the US will help maintain stability.

Exporters have urged the Indian government to expedite negotiations on the Bilateral Trade Agreement with the US due to reciprocal tariffs impacting orders. They are concerned about absorbing a 26% tariff and the potential surge of dumped Chinese goods. The government is monitoring imports and supporting affected sectors.

Indian exporters begin talks with American buyers to address the impact of the US’s additional 26% import duties on Indian goods starting April 9. The affected sectors include hand tools, leather, woolen, and carpets. Exporters emphasize that these duties will hurt demand and job creation, while calls are made for India to consider reducing tariffs […]

NITI Aayog member Arvind Virmani states that the first phase of the US-India Bilateral Trade Agreement, effective by fall 2025, will counteract the new US tariffs’ impact on India’s manufactured exports. The agreement aims to derive potential long-term economic gains over the next decade.

US President Donald Trump imposed tariffs up to 99% on trading partners, with India facing a 27% reciprocal levy from April 9. The tariffs aim to address a $1.2 trillion trade deficit and revive local manufacturing, sparking concerns over global growth and trade retaliation.