India will monitor the situation created by the US imposing additional import duty on global trade and will not take any steps in haste. The reason for this is that America may have to face problems with its own domestic industry. News agency PTI has said this quoting government sources. US President Donald Trump on April 2 announced a counter -duty of 11 to 49 percent on about 60 countries including India and China. This will be applicable from April 9.
The official said that there are both challenges and opportunities for India, as many of its competitive countries such as China, Vietnam, Bangladesh, Cambodia and Thailand are facing high fees. The source said, “As a country we need to monitor the situation and there is no need to hurry. It is something new. It is unprecedented. The American industries will also be angry with this move and there will be challenges. We need to wait, inspect and watch because we should not hurry to draw this conclusion.
The purpose of increasing import duty from the US is to reduce business deficit and promote manufacturing. Regarding the 26 percent fee on India, he said that only six-seven areas such as shrimp and carpet may have to face a challenge with heavy taxes, but most other areas such as pharma and electronics will get an opportunity to increase exports, as competitive countries will have to face more fees than India.
According to rough estimates, about 25 percent of India’s exports are exempted from tax and there is a ‘mixed scenario’ for the remaining. He also said that fees will be imposed on value-sensitive goods like gold jewelery and carpet. The US was India’s largest trading partner from FY 2021-22 to 2023-24. America accounts for about 18 percent share in India’s total goods exports, 6.22 percent in imports and 10.73 percent in bilateral trade.
India’s trade surplus (difference between import and export) on goods in 2023-24 with the US was $ 35.32 billion. It was $ 27.7 billion in 2022-23, $ 32.85 billion in 2021-22, $ 22.73 billion in 2020-21 and $ 17.26 billion in 2019-20. Last year, India’s main exports include drug manufacturing and organic products ($ 8.1 billion), telecommunications equipment ($ 6.5 billion), precious and semi-precious stones ($ 5.3 billion), petroleum products ($ 4.1 billion), gold and other precious metal jewelery ($ 3.2 billion), cotton prepared clothes ($ 2.8 billion), and cotton prepared textiles ($ 2.8 billion), and the products (2.7 billion dollars).
Import included crude oil ($ 4.5 billion), petroleum products ($ 3.6 billion), coal, coke ($ 3.4 billion), carved and polished diamonds ($ 2.6 billion), electric machinery ($ 1.4 billion), aircraft, spacecraft and its Kalpurje ($ 1.3 billion) and gold ($ 1.3 billion). According to the experts, there will be 54 percent duty in India, so India will face 54 percent of the goods according to the experts. There is a possibility of dumping.
The Ministry of Commerce is carefully investigating the implications of the announcements made by the US. He is consulting him to receive his response from stakeholders and is in touch with the concerned ministries to assess the impact. When asked about the impact of these fees on India’s agricultural exports to the US, the source said that Indians will consume these items regardless of migrant prices in the US. In terms of rice exports, while the current US fee is nine percent, India is leading in Vietnam and Thailand despite an increase of 27 percent.
In 2024, India’s fish, meat and processed sea food exports stood at $ 2.58 billion. Export of processed food, sugar and cocoa stood at $ 1.03 billion. Similarly, the export of grains, vegetables, fruits and spices of the country was $ 1.91 billion last year. Last year, dairy products worth $ 18.15 million were sent to the US, while the export of edible oils was $ 19.97 million. The total export of liquor, wine and spirit was $ 1.92 million.
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