India Inc. guarded as US tariffs loom
India has vulnerabilities with regard to its agriculture sector too, both in terms of reduced access to the US markets, and possible tariff cuts by India leading to rise in imports. Large sections of Indian industry, including sectors that are seen to be relatively more vulnerable to the reciprocal tariffs by the US, appeared largely unperturbed on Wednesday ahead of the Donald Trump’s administration’s imminent disruptive move. Several key industries that have high interest in the lucrative US markets, including electronics, pharmaceuticals, auto parts, and gems & jewellery, feel import duty cuts by New Delhi would be the best way to mitigate any adverse impact on their shipments. This will reduce the tariff gap between the two nations, which is a substantive 5% on a country-wide basis and much higher for scores of individual products. Even after the reciprocal levies are announced by the US, New Delhi would have the window to lower its tariffs, and urge the US to readj...