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Below the Quote on US tariff imposition and its impact on export-import dynamics and overall on Indian economy by Vinit Bolinjkar, Head of Research, Ventura

“The 25% U.S. tariff on Indian goods, along with potential penalties tied to Russian oil and defense trade, poses a serious threat to India’s export-driven economy. The U.S., India’s largest trading partner, accounted for $75 billion (excluding pharma) in goods exports in 2024. Electronics, textiles, and gems & jewellery are among the most exposed sectors, likely to face significant setbacks. Export competitiveness is challenged, but India may retain share versus China and Vietnam, which face higher tariffs of 54% and 46%, respectively. Pharmaceuticals are exempt, though broader CAATSA-linked sanctions add uncertainty. To safeguard its trade surplus and macroeconomic stability, India must accelerate export diversification and trade negotiations.”

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