New Delhi [India]: Despite US President Donald Trump’s decision to impose a 27% tariff on Indian goods, leading economists and industry experts believe India will face relatively less trouble compared to other major Emerging Markets (EMs) in Asia.
Why India May Withstand the Impact Better Than Others
🔹 India’s Inward-Looking Economy – Unlike export-heavy nations like China, Japan, Vietnam, and Sri Lanka, India’s economy relies more on domestic consumption.
🔹 Lower US Tariffs Compared to Other EMs –
- India: 27% tariff (including 10% baseline duties)
- Philippines: 17% + 10% baseline (lowest in Asia)
- China, Vietnam, Thailand: Higher tariffs, making their exports less competitive
🔹 Key Exemptions from Tariffs:
- No tariffs on pharmaceuticals, semiconductors, copper, and energy products.
- 25% tariff on steel, aluminium, and automobiles.
Expert Opinions on India’s Trade Resilience
📉 Sonal Badhan, Bank of Baroda (Economics Specialist)
“Exporters from India are likely to face relatively less trouble. Among major EMs in Asia, tariffs on US imports from India remain lower, barring the Philippines.”
📊 Sanjay Nayar, ASSOCHAM President
“Trump’s tariffs will trigger a global trade realignment. India sits in the middle of the tariff spectrum at 27%, and its real impact will need assessment.”
🏦 Debopam Chaudhuri, Chief Economist, Piramal Group
“India should focus on bank liquidity to support domestic consumption and small businesses as global trade dynamics shift.”
💡 Kunal Chaudhary, EY India (Tax Partner)
“India may benefit from a competitive edge over China, Thailand, and Vietnam, but it will also face tougher competition as export-focused nations divert their goods to other markets.”
India’s Strategic Path Ahead
With the US tariff war escalating, should India capitalize on the trade shift or counteract with retaliatory tariffs? 🤔