Indian exports will most probably face less hurdles under new US tariffs, economists believe. While the retaliatory tariffs announced by the Trump administration against Indian exports from April 2, 2025, pose a challenge—in particular to sectors like automobiles, textiles, electronics, and jewelry—economists believe India's robust domestic economy along with strategic trade moves can help to insulate the effect.
India's high tariffs on U.S. imports historically were 15.3%, compared to the U.S. at 3.8%. The new tariff regime aims to level this difference, hitting nearly $25 billion worth of Indian exports.
As alarms are sounded, experts are confident India will be able to beat the challenges by leveraging opportunities in other non-U.S. markets and boosting local production in the labor-intensive sectors of garment making, pharma, and auto components.
The government is also seriously negotiating reduced tariffs in the guise of a bilateral trade agreement (BTA) with America, which will gain Indian exporters concessions along with improved market access.
Exports incentives under the Export Promotion Mission will also continue to take the shock.
Economists also note that India's focus on domestic manufacturing and self-dependence can aid in strengthening its foothold in global trade during times of altered conditions because of American tariffs.
