Huge cranes that load containers to ships in Port in Chennai on April 8, 2025. | Photoredit: AP
Even as the rate of 27 % announced by US President Donald Trump is entirely in force from Wednesday, and the Indian Trade and the industry Minister Piyush Goyal, planning a meeting with Indian exporters on April 9, says a report from the Global Trade Research Initiative (GTRI countries) that can benefit India.
The GTRI report says that if the Indian government spends reforms to enable production production, to improve the domestic value and improve the competitiveness of the Indian industry, India can beat the rates.
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Goods from India are confronted with a 25 % rate on steel, aluminum and car, there are no rates for pharmaceutical, semi guides, copper or energy products and other products attract a 27 % duty.
“(De) profits will not automatically build up. India needs deep reforms for making scale production, domestic value addition and improving the competitiveness to take advantage. The new Trump rates offer opportunities, but they come with a large dose of unpredictability,” the report said.
Read also | Trump rates: sectors in India that are in the spotlight
Many investors would rather wait for stability in the tariff regime before they invest in countries that have made the new rates attractive. India has achieved a natural competitive advantage in various important sectors. One is textile and items of clothing. The high rates for the Chinese and Bangladeshi export are expected to help India to win market share, to attract production and increase exports to the US
In the electronics, telecom and smartphone sectors, countries such as Vietnam and Thailand are likely to lose the competitiveness of the costs due to the steep rates, so that opportunities for India are opened. “As worldwide brands want to diversify the supply chains of Hoge Tariff, India can come to the fore as a preference destination for new production setups and component mass blade lines,” said it.
Similarly, sectors such as machines, cars and toys, where China and Thailand currently have a dominant presence, also vulnerable to rate -related relocation. India has the potential to attract foreign direct investments in these areas with strategic planning and scale up domestic production.
To fully exploit these opportunities, India must improve the ease of doing business, invest in logistics and infrastructure and maintain policy stability, the report added.
Published – April 8, 2025 01:12 pm is
