The US plan to impose reciprocal tariffs could have restricted affect on India as it could choose sectors solely and will even create new alternatives for Indian exporters, NITI Aayog Programme Director Pravakar Sahoo mentioned on Friday. India is well-positioned in comparison with Mexico, China, and Canada, which collectively account for 50 per cent of America’s whole imports, he mentioned.
“We’re analysing the information at a extremely disaggregated stage… These are preliminary findings, however I can guarantee you that we aren’t going to lose out. These reciprocal tariffs will have an effect on just a few particular sectors and, the truth is, might create alternatives to broaden our exports,” Sahoo mentioned on the launch of the second version of NITI Aayog’s quarterly Commerce Watch.
In the meantime, NITI Aayog member Arvind Virmani identified that after the US imposed tariffs in 2018, China’s share of US imports declined. He acknowledged that such tariffs have traditionally led to elevated export alternatives, benefiting 5 international locations in 2018—Taiwan, Vietnam, Thailand, Mexico, and India.
The US has imposed a 25 per cent import responsibility on metal and aluminium merchandise from March 12. It has additionally introduced a sweeping 25 per cent tariff on fully constructed automobiles (CBUs) and auto components, set to take impact on 3 April.
US President Donald Trump has declared plans to introduce reciprocal tariffs in April on key buying and selling companions, together with India. He has repeatedly argued that India imposes excessive tariffs on US items. The US has already imposed comparable duties on Chinese language imports.
A US delegation, led by Assistant US Commerce Consultant for South and Central Asia Brendan Lynch, is at the moment in India for negotiations on a proposed bilateral commerce settlement. The talks are anticipated to conclude on Saturday.
India and the US are aiming to finalise the primary part of the settlement by autumn 2025 (September-October). Each nations have additionally set a goal to greater than double bilateral commerce to $500 billion by 2030, up from the present stage of over $190 billion.
