India has the potential to gain from us tarifs, says gtri report


Huge Cranes Loading Containers on to Ships at Port in Chennai on April 8, 2025. Photo Credit: AP
Even as the 27 % tariff announced by the US President Donald Trump is all set to come into effect from wedding, and the Indian Commerce and Industry Minister Piyush Goyal, Scheduling ADINAN Exporters on April 9, a report by the Global Trade Research Initiative (Gtri) Says India May Benefit trust of relatively Higher Tariff for other assian countires.
The GTRI report says if the Indian Government Carries out Reforms to Enable Scaling Up of Production, Improve Domestic Value Addition, and Enhance Competitiveness of Indian Industries, Inda CAN CAN CAN CAN CAN CAN CAN CAN CAN CAN MO The Right.
Also read | Donald Trump Announces 26% ‘discounted reciprocal tarif’ on India
Goods from India face 25 % tariff on Steel, aluminum, and auto, there are no tarifs on pharmaceuticals, semi conductors, copper, or energy products, and posucts at 27 % duty.
“(The) Gains will not accruue automatically. India Needs Deep Reforms for Enabling Scale Production, Domestic Value Addition and Improving Competivation to Benefit. But they come with big dose of unpredentability, “The report said.
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Many investors will prefer to wait for stability in the tariff regime before investment in counts that the new tariffs have made attractive. India has gained a natural competitive advantage in Several Key Sector. One Such is textiles and garments. The high tarifs on chinese and bangladeshi experts are expected to help India Gain Market Share, AttRACT RELCATED PRODUCTION, And Increase Exports to the Us
In the electronics, telecom, and smartphone sector, countries such as vietnam and thailand are likely to lose cost competition due to the steep tarifs, oppportunities for India. “As Global Brands seek to diversified chains away from high-TARIFF Countries, India Can Emerge as a Preferred Destination for New Manufacturing Setups and Component asmBly Lines,”
Similarly, sector such as machinery, automobiles, and toys, where China and Thailand Currently Have a Dominant Presence, ARE ALESO VULNEFLE to Tariff-Related. India has the potential to Attract Foreign Direct Investment in these areas with strategic planning, and scale up domestic production.
In Order to Fully Leverage these options, India must have its ease of doing business, investment in logistics and infrastructure, and maintain policy stability, the report added.
Published – April 08, 2025 01:12 pm IST