India’s Strategy For Trump Tariffs: New Markets Abroad, Strengthen Domestic Demand | Key Points | India News

New Delhi: India is prepared for a major export shock after applying comprehensive tariffs with an average of 50%to a wide range of Indian goods. The sudden movement directed by Washington’s challenging stance on trade with Russia gave an emergency response from the new Delhi, who is currently facing the largest trade partner with a potential loss of $ 48 billion in exports.

On the other hand, the government is accelerating its efforts to touch new markets in Europe, Asia, Africa and Latin America, including diversification and spreading of trade routes.

Here are the most important developments in this story:

New Export Strategy in 1. Jobs

Many media sources show that the Ministry of Trade has been preparing for high -level meetings with industrial stakeholders, trade representatives and other nations within the next 72 hours. The aim is to diversify India’s export portfolio rapidly and safe access to new markets, with minimum disruption in the most risky intensive sectors.

2. Focus on 40 strategic country

It aims to absorb 40 countries, including India, England, Japan, Australia and key EU members, to absorb the coup of US tariffs, especially on textiles and clothes. In FY25, only Indian textiles and clothes exports to the US were worth $ 37 billion. These 40 countries import 590 billion dollars of textile and clothing products in bulk, making them critical for India’s trade pivot.

The government plans to position India as a reliable source of sustainable, innovative and high -quality products. Although India already exports to more than 200 countries, these 40 is considered the most strategically important under current conditions.

3. Sectoral Impact and Reduction Plans

Many industries are expected to be influenced by leather, jewels and jewels and shrimp farming.

Leather shoes: Exporters such as Puran Dawar of Agra warn a sharp short -term decrease unless they increase the importation of Indian leather products.

Jewelery and diamonds: Lakhs employed diamond trade and India’s jewels and jewelery exports are faced with serious difficulty. The tariffs increased from 3% to more than 52% and made India disadvantaged compared to competitors such as Türkiye and Thailand. As a means of compensation, the government follows Hong Kong, Belgium and the UAE.

Shrimp Exports: India exported $ 2.4 billion shrimp to the US in 32.4% of its total shrimp exports. With the tasks expected to rise to 60 %, the farms in Andhra Pradesh are under serious pressure. The government is investigating exports to Japan, China and the EU, especially in Spain.

4. Touching new markets in Africa and Latin America

India is also investigating new borders in Africa and Latin America. Trade with Africa is currently exceeding $ 100 billion, and the authorities want to take advantage of the African Continental Trade Area Agreement, signed in 2021. The Latin American trade was $ 43 billion in 2023 and will reach $ 100 billion in 28 financial years.

5. Internal measures to increase consumption

In order to pillow the economy from external shocks, the government is renewing its focus on domestic consumption. The renewal of the goods and service tax (GST) framework is planned in front of Diwali. Reform is expected to reduce prices on important consumer goods from cars and tools to daily products.

6. Exemptions and the justification of Trump

There is some relief in the midst of sweeping trade restrictions. Approximately 30.2% of India’s exports to the United States are exempted from 27.6 billion dollars. These include pharmaceutical products and active pharmaceutical components that explain more than half of the exempted goods.

Tariffs, including 25% penalty for the countries that bought Russian oil, entered into force on Wednesday morning. He described the Indian movement as “unjust, unjust and irrational .. In 25 financial years, India exports to the USA was 86.5 billion dollars.

Now the difficulty is clear: it reinforces India’s export economy quickly to soften the impact of protective policies from Washington, while at the same time strengthening domestic demand to maintain economic acceleration.

(With inputs from agencies)