A day after the US imposed a 27% tariff on its imports, India on Thursday said that it was evaluating the impact of this change in US trade policy and exploring potential opportunities that may ariseread moreA day after the US imposed a 27% tariff on its imports, India on Thursday said that it was evaluating the impact of this change in US trade policy and exploring potential opportunities that may arise.India also vowed to push for a trade deal this year, signalling a conciliatory tone despite failing to get relief from President Donald Trump’s trade policy.In a statement, trade ministry said that it was “carefully examining the implications” of the US announcement and also holding talks with Indian industry and exporters on their assessment of the tariffs.Advertisement“The department is also studying the opportunities that may arise due to this new development in US trade policy,” Reuters quoted the trade ministry as saying, and referred to the agreement between Trump and Prime Minister Narendra Modi in February to work on the first phase of a trade deal by autumn 2025.More from India
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Meet Poonam Gupta, former World Bank economist, appointed as the RBI deputy governor“The ongoing talks are focused on enabling both nations to grow trade, investments and technology transfers,” it said, referring to negotiations between the two sides.“We remain in touch with the Trump administration on these issues and expect to take them forward in the coming days.”New Delhi’s response came hours after Trump announced the steep tariffs, which added pressure to a struggling global economy and caused stock markets and oil prices to plummet.While Trump said that Indian goods would be subject to a 26% tariff, the White House’s executive order set the rate at 27%, which was also confirmed by India’s trade ministry.A 10% baseline tariff will begin on Saturday, with the higher reciprocal tariff taking effect on April 9.New Delhi is also considering helping export sectors hurt by the new tariffs, Reuters quoted an Indian trade ministry source as saying.Indian officials would hold virtual meetings this month with their US peers to discuss a trade deal, the source said.Trump has slapped higher duties on other countries, including 34% on China on top of a 20% tax announced earlier, and 46% on Vietnam.AdvertisementThe relatively lower tariffs imposed on India calmed equity markets.The Nifty 50 fell 0.35% and the BSE Sensex lost 0.42%, but fared better than most Asian peers, as analysts said India’s relatively lower reciprocal tariffs compared to China, Vietnam, and Thailand could offer a competitive edge.The Indian rupee rose 0.08% to the US dollar, holding up reasonably well amid a dip in most Asian currencies.India gains a natural competitive advantage in several key sectors due to the relatively lower tariffs imposed, research firm Global Trade Research Institute said in a note.Nearly $14 billion worth of electronics products and over $9 billion worth of gems and jewellery are among the top sectors to be hit by the US tariffs.The Trump administration, however, exempted pharmaceutical exports from the tariff bringing cheer to India’s pharma industry. The US accounted for nearly a third of India’s pharmaceutical exports – mainly cheaper versions of popular drugs – with sales of about $9 billion last fiscal year.AdvertisementWith inputs from agenciesTagsIndiaUnited States of AmericaEnd of Article
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India looks for opportunities amid US 27% tariff, vows to push trade deal this year
