US mutual fees may have a limited impact on Indian exports: report

New Delhi:

Despite concerns over trade restrictions, the impact of the US tariff exchange on Indian exports is expected to be low, according to the State Bank of India in a statement.

Although the US impose higher fees in the 15 to 20 percent limits, the total decline in Indian exports to the United States is estimated to be only 3 to 3.5 percent.

It said, “Even the 15-20 percent imposed by the United States will limit the impact of export to us only 3-3.5 percent, which is still 3-3.5 percent, which must be denied by high export targets.”

According to the report, experts believe that the impact of India’s strategic exports, increased value addition and analyzing new trade routes can be offset.

The United States is the best export location in the United States, which is 17.7 percent of the total exports of 2023-24. However, India’s export strategy is developing to reduce dependence on any market.

India is working on strengthening its distribution chain networks to ensure stability in exports, with growing trade relations in Europe, the Middle East and other regions.

Although US charges on Indian goods have been relatively stable for many years, India’s payment policies are very energetic.

The report highlights that in 2022, it has declined from 2.72 percent in 2018 to 3.91 per cent in 2021. On the other hand, India’s tariffs on US imports rose significantly from 11.59 to 15.30 per cent in 2018.

This change in fare structures reflects India’s most promising trade policy, aimed at balanceing trade relations when protecting domestic industries. India adds to its exports, focusing on switching from raw materials to finished products and high -value products.

This strategy not only improve export revenues, but also reduces the potential impact of tariff hikes by ensuring that Indian products are competitive in the world markets.

In addition, India is active in alternative trade connecting Europe, the Middle East and the United States, and it is reported that it will reduce logistics costs and improve performance. This reconstructed supply chain approach is expected to strengthen India’s position in international trade despite global uncertainty.

Overall, although the US is likely to introduce higher fees, India’s most effective trade policies, export and supply chain reorganization is expected to alleviate the impact, ensures sustainable export growth.

(Except for the title, this story is not edited by NTTV staff and is released from a syndicate feed.)