Industry leaders in India have expressed that the 27 percent reciprocal tariffs announced by US President Donald Trump will lead to a significant reshaping of global trade and manufacturing supply chains, although the impact on India’s resilient economy is expected to be marginal.
Industry bodies emphasized that the full effect of the tariffs can only be assessed after a comprehensive evaluation, news agency PTI reported.
According to Sanjay Nayar, President of ASSOCHAM, “The tariffs announced by President Trump will undoubtedly trigger a realignment in global trade and manufacturing chains. India has been placed in the middle bracket with a 27 percent tariff, in addition to a 10 percent baseline duty. A thorough assessment is needed to determine the real impact.”
He further added that, on a relative basis, India’s export competitiveness in the US market would likely face minimal disruption. However, he stressed that Indian industries must continue enhancing export efficiency and adding more value to mitigate the effects of these tariffs.
PHDCCI President Hemant Jain noted that while India’s industrial competitiveness will help balance the effects of the tariffs, the nation’s GDP may only experience a short-term impact of about 0.1 percent. He added that in the medium term, any negative effects would likely be countered as the policy’s full impact is realized.
Looking ahead, given India’s strong economic performance and strategic importance, industry leaders are optimistic about continued collaboration with the US, facilitated by a well-negotiated bilateral trade agreement, said the ASSOCHAM President.
