India-US Trade Deal Faces Setback on Indian Imports. US President Donald Trump has imposed 25% tariff on Indian imports, however, questions are emerging about how India will respond to these economic uncertainties. Indian officials were in direct talk with the Washington.
US 25% Tariff on India: Boosting India-UK and India-EU Trade
This new tariff is another setback to India’s export-driven economy. However, the country has recently signed a Free Trade Agreement with UK and is in conversation to align its trade partnership with the European Union.
These US tariff mainly targets pharmaceuticals, textiles, and automotive exports. These exports are critical to India’s trade with the US.
However, with the India-UK FTA offering reduced trade barriers, India will look forward to strengthen its economic ties with the UK. This could widen up the access of Indian exporters to both UK and European markets.
India-UK FTA: A Strategic Move for Diversified Trade
The India-UK Free Trade Agreement is anticipated to bring substantial trade benefits to both India and the United Kingdom. This trade partnership could assist as a strategic move for India in order to reduce its dependency on the US market. India-UK agreement is projected to improve cooperation in areas like technology, services, and agriculture sectors that Indian exporters are keen to expand globally.
India Eyes Stronger EU Ties to Offset US Tariffs
Experts mentioned that India could also influence its growing relationship with the EU, seeking a more diversified trade portfolio to cushion the impact of US tariffs. If this move tend to be successful, India’s axis to Europe could redefine its role in the global economy, therefore, reshaping its trade dynamics for years to come.
As India align these new challenges, the growing trade landscape will likely see a recalibration of global alliances and economic strategies.
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
