‘Indian govt’s response on staying committed to negotiations might help cut tariffs’

Balagopal Balachandran, National Head – Air Freight, FEI Cargo said, “It is an unfortunate development, particularly given the strong strategic partnership that has been steadily built between India and the USA in recent years. According to UN COMTRADE data, India’s trade with the US nearly doubled over the last decade, rising from $64.6 billion in 2013 to $118.4 billion in 2024. Exports have led the charge, climbing 89.3 per cent, from $42 billion in 2013 to $79.4 billion in 2024, while imports have grown more moderately. The tariff hike will have major consequences for high-growth sectors such as chemicals, pharma, machinery and electronics, which have seen significant export gains in the past decade. While this move is unfortunate and will have a clear dent on our exports, we hope that this imposition of higher tariffs will be a short term and that a permanent trade deal between the two sides will be finalised soon. It is worth noting that 18% of India’s overall export goes to the US. To mitigate the impact of these tariffs, India may consider diversifying its export markets, increase domestic value addition, enhancing competitiveness and engaging in diplomatic efforts to resolve trade disputes. Another way to interpret the 25% tariff announcement is to see it as a starting point for renewed negotiation. The Indian government’s response on staying committed to the negotiations speak to that, as India in recent past got favourable trade deals with major partners like Japan, the UK and the European Union.”