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New Delhi: While US President Donald Trump's announcement of a 25 per cent tariff, plus penalty, on Indian imports from August 1 has raised concerns, Indian industry leaders on Wednesday believe this global trade shake-up could also open new growth avenues for the country.
Trump’s Tariffs Could Open New Growth Opportunities For India: Industry Leaders
Experts note that India's recent trade successes, such as the free trade agreement with the UK, show that the country is capable of turning challenges into growth opportunities on the global stage. President Trump on Wednesday announced that the US will impose a 25 per cent tariff with a penalty on Indian imports starting August 1.
New Delhi: While US President Donald Trump's announcement of a 25 per cent tariff, plus penalty, on Indian imports from August 1 has raised concerns, Indian industry leaders on Wednesday believe this global trade shake-up could also open new growth avenues for the country.
Reacting to the development, PHD Chamber of Commerce and Industry (PHDCCI) President Hemant Jain said that the United States' recalibrated trade policy, which is also targeting other major exporters like China, Vietnam, and Bangladesh, signals a larger supply chain realignment.
"While Indian MSMEs may feel an initial impact, this is also an opportunity. Global buyers are now looking to de-risk from overdependence on a few geographies, and India is emerging as the most credible, democratic, and scalable alternative," Jain said.
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“We have the demographic dividend, technological agility, and entrepreneurial depth to meet global demand across sectors from engineering goods and textiles to pharmaceuticals and electronics,” he added. He urged Indian industry to step up with quality, compliance, and competitiveness, stressing that similar tariff headwinds for China and Vietnam could help India gain long-term trust and expand its global market share.
“Let us view this moment not as a setback -- but as a springboard,” he added. Gem and Jewellery Export Promotion Council (GJEPC) Chairman Kirit Bhansali struck a cautious tone, appealing for diplomatic engagement.
"We urge the US administration to reconsider and call on both governments to engage in constructive dialogue that safeguards bilateral trade and protects the millions of jobs that depend on it on both sides," he said.
Experts note that India's recent trade successes, such as the free trade agreement with the UK, show that the country is capable of turning challenges into growth opportunities on the global stage. President Trump on Wednesday announced that the US will impose a 25 per cent tariff with a penalty on Indian imports starting August 1.
The announcement was made on Truth Social, his own social media platform. Trump said the decision also comes with a penalty on India for buying military equipment and energy from Russia. He claimed that India's tariffs are among the highest in the world and that the country also has “the most strenuous and obnoxious non-monetary trade barriers” compared to any other nation.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high,” Trump said. He also mentioned that the US has a massive trade deficit with India.
The announcement follows months of talks between the two countries, but a mini or interim trade deal has remained out of reach.
Source: ZeeNews
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