On April 9, 2025, the US government announced a strategic 90-day pause on newly introduced reciprocal tariffs—except for imports from China, which now face a staggering 145% duty. This recalibration offers a crucial window of opportunity for Indian exporters and policymakers.
With China effectively isolated from the US market due to high tariffs, Indian exporters, especially in electronics, textiles, leather, and machinery, are well-positioned to capture market share. The US demand for alternative sourcing is already generating increased enquiries and forward orders for Indian firms.
However, India must navigate this opening wisely. Authorities are enhancing checks to prevent misuse of transshipment rules, urging exporters to ensure legitimate value addition to qualify as Indian origin. Strategic moves such as joint ventures, contract manufacturing, and expanding local supply chains are essential to solidify India's role as a reliable trade partner.
Competing with Vietnam and Mexico, who have already embedded themselves in US supply chains, India must leverage the current pause to negotiate better trade access, promote production-linked incentive (PLI) successes, and advocate for GSP-like benefits.
As global trade realigns, this pause could be a pivotal moment for India to position itself as a key node in the restructured global value chains.
Comments
Post a Comment