Key Concern
- U.S. President Donald Trump’s proposed reciprocal tariffs could impact Indian exports to the U.S.
SBI’s Assessment
- Expected decline in India’s exports to the U.S.: 3–3.5% post-tariff implementation.
- Possible contributing factors:
- A downturn in U.S. GDP growth
- Slowdown in U.S. exports and consumption
SBI’s Recommendations and Optimism
- Offset the decline by targeting higher export goals in:
- Manufacturing
- Services
- India’s strategy includes:
- Export diversification
- Greater value addition
- Exploring alternative markets and sectors
- Redrawing supply chain routes from Europe to the U.S. via the Middle East
Despite the tariff risks, SBI views India as well-positioned to adapt and benefit in a changing global trade environment through proactive diversification and supply chain realignment.
