The new U.S. tariff policy could prove beneficial for India. According to a recent report, the U.S. may impose lower tariffs on India compared to the set tariff rates.
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| Social News In Rajasthan |
On the other hand, several Indo-Pacific countries will face heavy tariffs. This could increase foreign investment opportunities in India and strengthen the country's manufacturing capacity.
According to a report by Arihant Capital, India is in a better position under the U.S.'s new tariff system compared to many other Asian countries.
This presents a significant opportunity for India to attract investment and become a manufacturing hub. The report also stated that countries like Cambodia and Vietnam are facing higher tariffs.
India has not yet been issued a tariff notice.
On July 8, Trump sent formal letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung informing them about the tariffs. Later, similar letters were also sent to Malaysia and Kazakhstan.
However, India has not received any such letter so far. The report considers this a positive sign for India. According to experts, the U.S. may offer concessions to India due to its status as a strategic partner.
The report states that under the new U.S. tariff policy, India is in a stronger position compared to other countries. By capitalizing on this, India could become an important part of the global supply chain.
India’s ‘China+1’ strategy, Production-Linked Incentive (PLI) schemes, and trade deals are expected to provide opportunities to boost production in sectors such as electronics, pharmaceuticals, automobiles, and textiles.
Heavy Tariffs on 14 Countries in Trump's New Tariff List
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| Social News In Rajasthan |
Benefit Gained from Trade Agreements with the UK and EU
The trade agreements with the UK and EU have further strengthened India’s position.
The report mentions the signing of the India-UK Free Trade Agreement in May 2025 and the ongoing negotiations with the European Union. These two trade deals have given India an opportunity to emerge as a global manufacturing hub.
However, the report also warns that the U.S. is actively working to bring its supply chain back to domestic soil under its "re-shoring policy." Trump is particularly focused on the semiconductor, defense, and pharmaceutical sectors.
In such a scenario, if Trump takes a stricter approach in these sectors, India may benefit less than expected.
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