• Notification Date: 17-02-2025
• Notification No: N/A

India's exports to USA on the Brink of Having Minimum Impact Regardless of Higher Tariffs: SBI Report

Indian exports to the US will be robust even if hit by adverse tariff increases of 15-20%, says a State Bank of India report. While the tariffs translate into a fall in exports of 3-3.5%, India has ways to counteract the effect by selective export diversification, increased value addition, and other channels of trade.

The U.S. is India's largest market for exports with 17.7% of FY 2023-24 exports. But India is moving towards diversifying dependence on a single market, and it is forming closer trade relations with Europe, the Middle East, and other nations. It is backed by initiatives to raise supply chains in an attempt to make trade more efficient and reduce the cost.

Although American trade tariffs on Indian products have come a long way from the past, India's tariff policy has become more dynamic aimed at shielding industry and increasing the value of exports. In its shift to high-value and processed products, India is trying to stay competitive in foreign markets even at times of dislocations in trade.

Overall, India's export policy and more assertive trade strategies will offset the negative effect of higher U.S. tariffs and keep its exports on the growth path of GDP in the long term.