New Delhi: As US President Donald Trump announced new tariffs on America’s trading partners, including China, European Union, India and others, Indian exporters’ body FIEO on Thursday said the 27 per cent import duties would be a challenge for the domestic players. However, the traders’ association sounded confident that India is in a more favourable position than that of its competitor nations.
Federation of Indian Export Organisations (FIEO) president SC Ralhan said that despite the tariffs announced by the Trump administration, sectors like furniture, apparel, electronics, chemicals, plastics, gems and jewellery, and leather in India may experience a diversion of exports, which may offset some adverse effects.
“While these tariffs do present challenges, India’s position remains comparatively favourable. For instance, Vietnam faces a 46 per cent tariff, China 34 per cent, and Indonesia 32 per cent, placing India in a relatively better position than key competitors such as Vietnam, China, Indonesia, Bangladesh, Sri Lanka, and Myanmar,” Ralhan said.
He advocated for the finalising of a Bilateral Trade Agreement (BTA) between India and the US at the earliest as it would help mitigate these tariffs and provide relief to Indian exporters.
“Such an agreement could establish a structured framework for resolving tariff challenges , thereby reducing the likelihood of unilateral trade measures or retaliatory tariffs,” he said.
India and the United States are in talks to reach an agreement for the first phase by fall (September-October) in 2025. The countries are aiming at doubling the bilateral trade in goods and services to USD 500 billion by 2030 from the current USD 191 billion.
In 2023-24, India had a trade surplus with America of USD 35.32 billion in goods.
What India exported to US in 2024
Drug formulations and biologicals (USD 8.1 billion)
Telecom instruments (USD 6.5 billion)
Precious and semi-precious stones (USD 5.3 billion)
Petroleum products (USD 4.1 billion)
Gold and other precious metal jewellery (USD 3.2 billion)
Ready-made garments of cotton, including accessories (USD 2.8 billion)
Products of iron and steel (USD 2.7 billion).
What India imported from US in 2024
Crude oil (USD 4.5 billion)
Petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion),
Cut and polished diamonds (USD 2.6 billion)
Electric machinery (USD 1.4 billion), aircraft, spacecraft and parts (USD 1.3 billion)
Gold (USD 1.3 billion)
US President Donald Trump’s new tariffs pose challenges to Indian exporters, particularly in sectors like apparel and electronics. However, India’s relatively lower tariff compared to competitors like Vietnam and China offers a competitive edge. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
