India could benefit from reciprocal tariffs even as world fears Trump tariff threats. 3 reasons why
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Even as the world is gearing up for reciprocal tariffs, which will likely be announced by US President Donald Trump on April 2, India could see a minimal macro impact or even benefit from the fresh salvo, provided it plays the cards rightly. Before moving on to how India could gain from the tariffs, we should acknowledge that there will be some impact, albeit indirect and minimal. India’s exports would feel the pinch if global trade and growth slow down amid rising trade tensions. However, there is near consensus that this event will most likely be transient unless it evolves into a full-scale trade recalibration. India's exposure to the US has grown over the years, with FY24 exports of $77.5 billion, but the majority of these are in categories where India is either not easily substitutable or where US consumers would bear the cost of tariffs. "Unless it triggers retaliatory spirals or disrupts supply chains, this is more bark th...