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Below the Quote on Trump Tariffs impact on Indian Market by Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP

"On April 2, 2025, the U.S. imposed a 26% effective tariff on Indian goods, threatening export momentum—especially in textiles, electronics, and engineering. While key sectors like pharma and energy are exempt, MSMEs risk job losses and lower capacity utilization.

In response, India and the U.S. began trade talks. India seeks tariff relief for labor-intensive goods, while the U.S. pushes for market access. Both aim to double bilateral trade to $500B by 2030. A dumping threat looms as East Asian surplus may flood Indian markets. Meanwhile, India’s dependence on Chinese inputs limits its ability to scale but also presents an opportunity to replace China in U.S. supply chains. Domestic demand could help offset export losses, but it needs safeguards. Inflation, rupee pressure, and twin deficits add macro risks. The Way Forward: Trade defense, PLI-led manufacturing, FTAs, and monetary stability are key to turning disruption into opportunity"

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