US tariffs will bring major realignment in global trade: India Inc
India Inc believes the real impact of the reciprocal tariffs on India announced by US President Trump can be gauged only after a proper assessment.
US President Donald Trump's announcement of 27 per cent reciprocal tariffs on India would bring a major realignment in global trade and manufacturing value chains, while the country's resilient economy may feel a marginal impact, industry bodies said on Thursday.
India Inc believes the real impact of the announcements may be gauged only after a proper assessment.
Tariffs unveiled by President Trump last night would bring a major realignment in global trade and manufacturing value chains.
India has been placed somewhere in the middle of the tariff rates at 27 per cent in addition to 10 per cent baseline duties, which need to be assessed for real impact, said ASSOCHAM (Associated Chambers of Commerce and Industry of India) President Sanjay Nayar.
''Net-net, it appears India's export competitiveness to the US market stands far less impacted on a relative basis. Yet our industry should make concerted efforts to increase export efficiency and value addition to mitigate impact of these tariffs,'' he said.
India’s robust industrial competitiveness will balance the impact of US tariffs, and GDP will see only a 0.1 per cent impact in the short term, said PHDCCI (PHD Chamber of Commerce and Industry) President Hemant Jain.
However, in the medium term, as the policy takes full effect, this shortfall will be negated, he added.
Going ahead, given India's sustained economic development and strategic importance, we expect continuing collaboration with the US through a well-negotiated bilateral trade agreement, the ASSOCHAM President said.
Edited by Swetha Kannan
