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Informist, Saturday, Apr. 5, 2025

 

--Govt source: US tariff gives relative advantage to India over Asian rivals
--Govt source: India has 1st mover advantage in terms of trade pact with US
--Govt source: To manage dumping from Asian nations if, when needed
--Govt source: Likely fall in demand in US due to tariff a concern for India

 

NEW DELHI – The reciprocal tariffs imposed by the US is set to make import of goods more expensive in the country, and a likely fall in demand due to this is a concern for Indian exporters, a government official said. The US is India's top export market with a share of over 15% in India's total outbound shipment.

 

India, however, has a first mover advantage against other nations in terms of trade pact negotiations with the US, the official said, adding that it would help India in navigating through the tariff war situation. India and the US have been engaged in negotiations for a trade agreement since February. New Delhi, during negotiation for a trade deal with Washington, is likely to ask the US to exempt Indian goods from the reciprocal duty, the official said.

 

India does have a comparative advantage against its Asian rivals--China and Vietnam--in some sectors due to the tariff differential with them, the official pointed. While the US has imposed a 26% duty on Indian goods, the duty on Vietnam is 40%, and China 34%.

 

Considering the US has imposed high tariffs on these Asian nations, there's a possibility that they may target the Indian market as an alternative. But the Indian government has a robust mechanism to monitor dumping, and it would manage it as and when there's a requirement, the official assured.

 

In the first 11 months of 2024-25 (Apr-Mar), India exported goods worth $76.38 billion to the US and had a trade surplus of $34.75 billion.  End

 

US$1 = INR 85.23

 

Reported by Krity Ambey

Edited by Akul Nishant Akhoury

 

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