Perspective on additional 25% US tariffs by trump affecting the Indian Markets by Robin Arya, smallcase manager and Founder at GoalFi
Below the Perspective on additional 25% US tariffs by trump affecting the Indian Markets by Robin Arya, smallcase manager and Founder at GoalFi
At GoalFi, we strongly condemn President Trump's punitive 50% tariff on Indian goods targeting India for legitimate Russian oil purchases that ensure energy security for our 1.4 billion citizens. This "unfair and unjustified" measure, as our External Affairs Ministry rightly stated, represents economic coercion that undermines strategic partnership principles.
Our analysis shows approximately 55% of India's $86.5 billion US exports face these crushing tariffs, particularly devastating sectors like textiles (45 million workers), gems and jewelry (7% of GDP), and auto components. Indian exporters now face a 30-35% competitive disadvantage versus regional peers.
However, we believe India stands well-prepared. With 82% of exports directed beyond the US market, our economy demonstrates remarkable diversification. The government's Rs.20,000 crore export support package, enhanced PLI schemes, and accelerated EU-UK FTA negotiations showcase proactive response mechanisms.
From an investment perspective, this challenge creates opportunities in domestic consumption-led sectors while export-oriented names may consolidate. We maintain conviction in India's strategic autonomy and long-term growth trajectory, viewing current market corrections as attractive entry points for quality domestic businesses.
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