India has emerged relatively unscathed from the recent global tariff hikes, according to Ashish Chauhan, Managing Director and CEO of the National Stock Exchange (NSE). Speaking on Sunday, Chauhan highlighted that while several nations have faced significant challenges due to the new tariffs, India’s position remains comparatively favorable.
Chauhan noted that the recent tariff adjustments have impacted global trade dynamics, but India has managed to secure some relief compared to other countries. He emphasized that in the coming days, many nations, including India, are expected to engage in discussions with the United States to negotiate reductions in tariff burdens.
“Although new tariffs have been imposed in recent days, India has still received some relief compared to other countries,” Chauhan remarked. He added that India will present its case during these discussions, aligning with efforts by other nations to mitigate the impact of the tariffs.
Chauhan also pointed out that countries like Pakistan and Bangladesh have historically maintained lower tariffs to support their import-export businesses, a strategy that has influenced their trade competitiveness.
His observations align with a recent report by SBI Research, which underscores India’s limited exposure to US tariffs. The report reveals that India’s exports to the US account for only about 4 percent of its GDP, a factor that has shielded the country from severe repercussions. Additionally, the new US tariffs on India are among the lowest imposed on key Asian nations, providing India with a competitive edge over peers such as China, Vietnam, Thailand, and Indonesia.
The SBI report further highlights potential long-term benefits for sectors like electronics and agriculture, which could capitalize on India’s tariff advantage. However, it also acknowledges short-term challenges for industries such as gems and jewellery and engineering goods.
“We expect India will have a competitive advantage and export-oriented impact on various sectors,” the SBI report stated on April 4.
Despite these advantages, India’s exports to the US have been on a declining trend since FY23, with their share in total exports hovering around 17-18 percent. The report also notes that the top 15 items exported to the US account for 63 percent of India’s total exports, indicating a concentrated export portfolio.
Chauhan’s remarks and the SBI report collectively paint a picture of cautious optimism for India’s trade prospects. While challenges remain, India’s relatively favorable position amid the global tariff hikes offers a strategic opportunity to strengthen its export-oriented sectors and enhance its competitive standing in international markets.
