Business News | Experts See Limited Immediate Impact of US Tariff Under Sec 301 on India, Stress Export Diversification for Long-term Gains
Get latest articles and stories on Business at LatestLY. The 10 per cent US tariff under Section 301 on Indian goods is expected to have only a limited immediate impact on exports, economists said. They added that India should focus on expanding export markets and strengthening long-term trade ties with the United States.
Ahmedabad (Gujarat) [India], July 24 (ANI): The 10 per cent US tariff under Section 301 on Indian goods is expected to have only a limited immediate impact on exports, economists said. They added that India should focus on expanding export markets and strengthening long-term trade ties with the United States.
Speaking with ANI, economist Sunil R. Parekh said keeping Indian under 10% tariff is "a good step" that reflects India's ability to present its case effectively before the US administration, and added that the immediate economic impact would be marginal.
"In my opinion, the difference in tariff between 12.5 per cent to 10 per cent is of marginal significance. It's a good step. I think it shows that we have been able to negotiate and present India in the correct light to them," Parekh said.
While different sectors may be affected differently depending on labour-intensive production and future regulatory developments, he said the short-term impact would remain limited.
Calling allegations of forced labour against Indian exporters "absolutely baseless", Parekh said Indian labour laws are stringent and exporters have already presented detailed data to the US authorities. Looking ahead, he said export diversification would be the best strategy to reduce dependence on policy changes in any one market.
"The best way to mitigate against US fluctuation is to diversify exports," he said.
Echoing similar views, Vishwanath Pingali, Professor at the Indian Institute of Management (IIM) Ahmedabad, said the 10 per cent tariff provides much-needed certainty after months of changing tariff proposals and places India among countries facing the lowest tariff rates under the latest US action.
"I think this 10 per cent may come as a closure... settling at the best tariff rate that the US has imposed on any country, I think this is a good thing," Pingali told ANI.
He said the reduction could benefit sectors where India faces intense global competition, such as textiles, while its impact on other sectors may be limited. He added that continued investment in technology, government initiatives to boost manufacturing, and diversification into new export markets would be key to strengthening India's competitiveness and reducing exposure to future tariff uncertainty.
Overall, both experts said the latest tariff decision signals improving India-US trade engagement, while emphasising that long-term gains will depend on expanding export destinations, improving competitiveness and sustaining dialogue between the two countries. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)