Thu Apr 03 06:42:14 UTC 2025: ## India Poised to Benefit from US Tariff Policy, Says Think Tank

**New Delhi, [Date]** – India is well-positioned to capitalize on the United States’ new 26% import tariff policy, according to the Global Trade Research Initiative (GTRI). While the US has exempted essential items like pharmaceuticals, semiconductors, copper, and energy products, the higher tariffs imposed on several Asian nations – including China, Vietnam, and Bangladesh – create a significant opportunity for India to attract relocated manufacturing and boost exports.

GTRI founder Ajay Srivastava highlighted that India’s comparatively lower 26% tariff rate, compared to rates as high as 54% imposed on China, offers a competitive advantage. He emphasized that sectors like textiles and garments are particularly well-placed to benefit from the increased tariffs on Chinese and Bangladeshi goods. The electronics, telecom, and smartphone sectors also present opportunities, as Vietnam and Thailand’s competitiveness is weakened by the higher US tariffs. India’s existing Production-Linked Incentive (PLI) scheme is expected to further support this growth.

While opportunities exist in the semiconductor sector, particularly in packaging and testing, Srivastava cautioned that realizing these gains requires significant domestic reforms. India needs to enhance its ease of doing business, improve its logistics and infrastructure, and maintain policy stability to fully leverage these opportunities. He noted that India already faces a 25% tariff on steel, aluminum, and auto sectors, and a baseline 10% tariff on other goods until April 8th, before the 26% tariff takes effect.

The GTRI analysis suggests that while the US aims to reduce its trade deficit and boost domestic manufacturing through these tariffs, India, with the right policy and infrastructural improvements, can become a key global manufacturing and export hub. However, success hinges on implementing these reforms and fostering a more competitive business environment.

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