How will India defend 25 percent of America's tariff? Read how the business will directly affect the business - Donald Trumps rates on the limited impact of India say report
Despite the fact that the Trump’s tariff is imposed, experts believe it will have a limited impact on India. According to Morgan Stanley’s report, India is in a better position in Asia, as the commodity export GDP ratio is low. According to Fitch ratings, India’s large domestic market reduces the dependence on external demand. Ians, New -Delhi. Trump may have announced rates on India, but experts believe it will not have much effect. In a recent report by Marghan Stanley, it was said that India is the best position in Asia amid the global uncertainty arising from the threat of Trump to increase the fee. The reason is that his object Export-GDP ratio is low. According to a Fitch report, the large size of the domestic market of India reduces its dependence on its external demand and will protect the country from the US fee increase. The international rating agency also said that even if the US imposes any tariff on India, the economy is expected to maintain a 6.5 percent growth rate in FY 2026. How much will Trump’s tariff affect India? According to a latest report from SBI Research, the export of India to the US is only four percent of its GDP, so the direct impact of the tariff on Indian goods will only be limited. India’s exports to the US has been declining since the financial year 2023 and the share in total exports is about 17-18 percent. The report said that the total export of the top 15 items exported to the US is 63 percent of exports. The ‘serious’ impact on shrimp exports will affect agricultural economist Ashok Gulati that the US high fee of 25 percent and fine will have a ‘serious’ impact on the export of India’s sea food, especially the export of shrimp. Gulati said that Trump’s decision to impose high fees on all Indian goods is ‘very bad’ and ‘shocking’. He said he expected only 10-15 percent fees. “It clearly indicates that Trump is unexpected and punishment,” he said. Gulati said the move will affect the export of the country’s shrimp and benefit the low fee and Ecuador, which is now close to the US. In addition to exporting shrimp, the impact of high US duty on the textile industry in India will also be seen. He said: “The great advantage we get from the Indo-Bitten Free Trade agreement will be ineffective due to high US fees.” India’s shrimp exports reached about $ 4.88 billion in FY 2024-25, which is 66 percent of the total export of sea food. The US and China remain the best markets for Indian shrimp, where about half of the export of raw shrimp varieties go to the US. Trump stimulates the $ 44 billion trading deficit. Let us know which products are exporting India to the US and which is the US lack of trade with India. Bilateral trading between India America to the US of large exports (in billion dollars) stores (percent) stone, metals and purves, 12.2, 14.3 Electric machinery and electronics, 12.14 pharmaceutical products, 10.8, 12.6 machinery, mechanical applications, mechanical devices, medicine, MENRAL OIL, 5.2, 6.1. 3.6, 4.2, Iron/steel, 2.9, 3.4 car, tractors, trucks, their parts, $ 2.7, 3.2 India’s total export to the US, $ 85.5 billion from India from America, India’s total imports from America, $ 41.4 billion, $ 44.1 billion (Figures 2023 km).