Indian exporter bodies and trade experts, however, are projecting a substantial hit to India’s exports.
According to the Federation of Indian Export Organisations president S.C. Ralhan, the development could “severely impact” India’s exports to the U.S., “with approximately 55% of India’s U.S.-bound shipments (worth $47-48 billion) now exposed to pricing disadvantages of 30% to 35%, rendering them uncompetitive in comparison to competitors from China, Vietnam, Cambodia, the Philippines, and other Southeast and South Asian countries”.
According to the Global Trade Research Initiative (GTRI), the impact on India could be even worse. As per the think tank’s calculations, 66% of India’s exports to the U.S., worth $60.2 billion, will face 50% tariffs in sectors such as apparel, textiles, gems and jewellery, shrimp, carpets, and furniture. Another 30% ($27.6 billion) of India’s exports to the U.S. will remain duty-free, while 4% ($3.4 billion) will face a 25% tariff.
