New Delhi:
According to a recent report by SBI Research, the US Trade Reciprocal Tariff will have a negligible impact on India. The main reason for this is that India has diversity in its exports as well as emphasis is being laid on value addition. Apart from this, India is looking for alternative avenues and is working on new trade routes from Europe to America through the Middle East. As soon as, the new supply chain is rebuilding the algorithm and making it better.
Possibility of slight decline in exports
The report of SBI Research released on Monday, March 17 stated that India’s total exports may fall by 3-3.5%. However, it should be improved through high export goals in both manufacturing sector and service sector.
India can benefit from American tariff
India will also be able to take advantage of aluminum and steel tariffs imposed by the US last week. According to the report, India has a trade deficit of $ 13 million for aluminum trade with the US and $ 406 million for steel trade, which India can turn in its favor. That is, India can benefit potentially.
New tariffs will be implemented from April 2
US Reciprocal Tariff is likely to be implemented from April 2. Bilateral talks are going on between India and America. Union Commerce Minister Piyush Goyal said last week that he said last week that he has a mutually beneficial bilateral trade agreement between India and America on Bilateral Trade Agreement – BTA Discussed with (Jamieson Greer).
Discussion under India First ‘policy
Union Minister Goyal shared a picture of this meeting with Greer with his official X handle. He said that India’s policy will be based on the vision of ‘India First’ and ‘Developed India’. Earlier, during the US tour, he also met US Commerce Secretary Howard Lutnick.
After this, US President Donald Trump and Prime Minister Narendra Modi interacted on the first phase of the multi-regional bilateral trade agreement (BTA) mutually beneficial by 2025.
India will benefit from FTA
SBI Research report said that India is talking about promoting domestic manufacturing through free trade agreements – FTA. In the last 5 years, India has signed 13 FTAs with countries like Mauritius, UAE, Australia. Apart from this, India is also discussing FTA with the UK, Canada, European Union (European Union – EU).
Digital business will get a boost
India has signed 13 FTAs with its business partners like Mauritius, UAE, Australia etc. in the last five years. The country has also been negotiating FTA with UK, Canada and European Union, which has targeted areas like services, digital trade and sustainable development.
India and New Zealand have also announced to start negotiations for a wide and mutually beneficial FTA. The FTA with Britain alone is expected to increase $ 15 billion in bilateral trade by 2030. According to the report, future FTAs will probably focus on increasing digital trade. According to estimates, the digital economy can contribute 1 trillion dollars to India’s GDP (GDP) up to 2025.