U.S. Tariffs: A New Challenge for Indian Exporters
The recent U.S. tariff imposition on Indian exports—linked to India’s imports of Russian oil—has created significant hurdles for Indian businesses. Labour-intensive sectors like textiles, leather, and handicrafts feel the impact the most. These industries, which employ millions, now face higher costs and reduced competitiveness in the American market.
Strategic Moves for India: Negotiation and Diversification
While the recent Alaska summit between India and the U.S. brought no immediate relief, India must now focus on negotiating sector-specific exclusions to shield vulnerable industries. At the same time, Indian exporters can reduce dependence on the U.S. market by exploring alternative destinations such as the UAE and the European Union. Expanding services exports and leveraging government support will also be crucial for building resilience.
India’s future competitiveness depends on proactive policy measures, robust trade negotiations, and strategic market diversification. By strengthening both goods and services exports, India can turn this challenge into an opportunity for a more balanced and resilient trading ecosystem.
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