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27% US levy on Indian goods threatens biggest export market; could dent domestic GDP growth by 30-50 basis points in FY26
At a granular level, with some sectors like pharmaceuticals kept out of purview for now, the overall impact on India is likely to be more indirect than direct
The Nifty Pharma index surged 2.25 per cent after the pharmaceutical sector was unexpectedly spared from reciprocal tariffs, at least for now
India's growing auto components industry could step in to fill the gap left by these shifts
The de minimis system allowed products and merchandise under $800 to enter the US without any duty and with minimal inspection
Could lead to slower decision making, less discretionary spending on new-age technology
Sensex and Nifty bend, but don't break under the reciprocal import duties announced by the US
One of the most affected industries is gems and jewellery, which contributes significantly to India's export earnings
Experts suggest scouting new markets in China, Europe and Middle-East for Indian shrimps
In many other countries, including Saudi Arabia, Brazil, Turkiye, Egypt and the UAE, the US has imposed a reciprocal duty of only 10 per cent
Tariff worries, raw material costs still ail sector
US President Donald Trump has announced reciprocal tariffs of 27 per cent on imports from India effective April 9
Sona BLW Precision Forgings, Bharat Forge gets and Motherson Group among Indian companies that earn a major source of their revenue from the US
India Inc leaders say they are turning their attention inward, seeking fresh investment opportunities in domestic markets
Trump's 26% tariff on India rattles sectors from IT to autos; brokerages flag risks to growth, trade talks, and policy outlook
Till now, American buyers were already keeping their orders on hold owing to the lack of clarity on reciprocal tariffs
The US is India's largest exporter, with total outbound trade reaching $60 billion in the April-December period of FY25
The advantage could grow if trade negotiations lead to zero-duty cotton imports. Under Trump's tariff plan, Vietnam's textile exports will face a 46% duty, Bangladesh's 37%, and China's 54%
It is quite clear that this announcement is only the beginning, and the US will impose tariffs across the board, without discriminating between its friends and not-so-good friends
According to industry experts, the higher tariffs on China and Vietnam will turn out to be most beneficial for Tamil Nadu