India’s export momentum may face short-term hurdles if former U.S. President Donald Trump reimposes high tariffs on imports, say economists. The proposed tariff could cost Indian exporters $16–18 billion annually in duties.
Policy Support Keeps India Attractive
Despite the risk, experts believe India’s long-term manufacturing appeal remains intact. Factors such as a large, cost-effective workforce, stable policy environment, and ongoing government incentives continue to attract global investors.
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Tariff Seen as Temporary Setback
Economists argue Trump’s tariff threat is a short-term deterrent, not a structural disruption. India’s improving infrastructure, export resilience, and China+1 strategy alignment help maintain its investment appeal.
Focus on Strategic Sectors
Experts suggest the government should lower logistics costs and offer targeted fiscal support to high-employment sectors. This would help protect margins and encourage relocation of global supply chains to India.
India’s robust fundamentals and forward-looking policies are expected to keep it a key player in global manufacturing, even amid trade headwinds.
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