Wed Dec 04 10:00:25 UTC 2024: ## India Poised to Benefit from Trump’s US Trade Policies, Says NITI Aayog

**New Delhi, December 4, 2024** – India stands to gain significantly from President-elect Donald Trump’s planned high tariffs on imports from Mexico, Canada, and China, according to NITI Aayog CEO B.V.R. Subrahmanyam. Speaking to reporters today, Subrahmanyam stated that the anticipated disruption to US trade will create substantial export opportunities for India. He urged domestic industries to prepare to capitalize on this “trade diversion,” highlighting the potential for a “massive boom.”

Trump’s announced 25% tariffs on imports from Mexico and Canada, and an additional 10% on Chinese goods, were cited as the catalyst for this potential windfall. Subrahmanyam used the analogy of a “catch” in cricket to emphasize India’s need to proactively seize the opportunity.

While acknowledging the multi-faceted nature of US-India relations, Subrahmanyam emphasized the significant economic dimension, noting that the US is India’s largest trading partner. India’s exports to the US totaled $77.51 billion last fiscal year, while imports amounted to $42.2 billion. The US also accounts for 70% of India’s IT export revenue.

These remarks are particularly noteworthy given Trump’s past criticisms of India’s import tariffs. During his election campaign, he labelled India a “Tariff King.” This contrasts sharply with NITI Aayog’s optimistic assessment of the situation.

NITI Aayog also unveiled a new quarterly report on India’s trade today. In a separate statement, NITI Aayog Vice Chairperson Suman Bery cautioned against an overemphasis on trade deficits, arguing that a floating exchange rate naturally leads to such deficits, and that these aren’t necessarily negative. He stressed the importance of balancing the need to promote domestic industries with the benefits of imports, warning against policies that could lead to local monopolies.

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