Feb 17, 2025 11:52 AM IST
The SBI report estimates India’s exports to say no solely by round 3-3.5% even when the US imposes larger tariffs within the vary of 15-20%.
US President Donald Trump speaks within the Oval Workplace of the White Home in Washington, DC (Reuters)
The report estimates India’s exports to say no solely by round 3-3.5% even when the US imposes larger tariffs within the vary of 15-20%.
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It’s because the influence can doubtlessly be offset by India’s strategic export diversification, elevated worth addition and exploration of latest commerce routes, based on the report.
That is regardless of the US being India’s high export vacation spot, accounting for 17.7% of whole exports throughout the monetary yr 2023-24.
Nevertheless, India can be evolving its export technique to scale back its dependence on a single market with rising commerce ties in Europe, the Center East and different areas.
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The considerations over US tariffs come at a time when US tariffs on Indian items stay comparatively steady over time, however India’s tariff insurance policies are extra dynamic.
US tariff charges on Indian items elevated from 2.72% in 2018 to three.91% in 2021 earlier than barely reducing to three.83% in 2022, based on the report which added that India’s tariffs on imports from the US rose extra considerably, from 11.59% in 2018 to fifteen.30% in 2022.
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The Indian tariffs are primarily to guard home industries which have additionally been specializing in worth addition to exports. This technique not solely enhances export earnings, but in addition reduces the potential influence of tariff hikes guaranteeing that Indian items stay aggressive in world markets.
Really useful Subjects Information / Enterprise / US tariffs more likely to have minimal influence on Indian exports, says SBI report
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