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US Tariffs Threaten Indian Exports: Engineering, Textiles, Pharma and Gems Face Pressure
The challenge of US tariffs: US tariff pressure has posed a new challenge for India regarding its export markets. Given the importance of the US market to sectors such as engineering, auto components, textiles, gems and jewellery, and pharmaceuticals, companies may face potential cost pressures and competition.
The recent tariff move by the United States on India will not be a mere trade war, but may serve as a big challenge for India’s export policy. The United States is the largest importer of Indian products. Engineering goods, drugs and pharmaceuticals, gems and jewelry, textiles, and electronic goods constitute major revenue sources for these industries. The greatest danger is not just the imposition of tariff, but uncertainty. Industry organizations and exporters are now closely monitoring the government's strategy.
Five major weapons to counter tariffs
- New FTAs and market diversification
- Continuous trade negotiations with the US
- Reducing logistics and port costs
- Strong growth in electronics, pharmaceuticals, and engineering
- Attracting investment through the China Plus One strategy
This is the issue that the industry is most concerned about. Recently, India has expanded trade agreements with countries like the UAE, Australia, the UK, and New Zealand. Ajay Srivastava of Global Trade Research said, "Finding an alternative to the world's largest consumer economy is not immediately possible, but it is possible to share the risk. However, Trump will not easily give up any avenues for obtaining concessions from other countries."
