New Delhi [India], April 3 : India is not so badly impacted by the imposition of tariffs by the US, which were announced by President Donald Trump on April 2, said ASSOCHAM president Sanjay Nayar.
Speaking to ANI on the possible impact of the tariffs, ASSOCHAM's Nayar highlighted the fact that the Indian economy is more inward-looking compared to its peer Asian markets.
ASSOCHAM president Sanjay Nayar said, "Looking at the tariffs, I think we are not as badly impacted; the 26 per cent tariff number looks steep, but when you look at it relative to other Southeast Asian countries, then it looks better."
The import tariffs on other major countries are China (34 per cent), the European Union (20 per cent), Vietnam (46 per cent), Taiwan (32 per cent), Japan (24 per cent), India (26 per cent), the United Kingdom (10 per cent), Bangladesh (37 per cent), Pakistan (29 per cent), Sri Lanka (44 per cent), and Israel (17 per cent).
"I think there will be a major realignment of intra-Asia trade and supply chains. It will all take time. Given that pharma is exempt, we would be relatively less impacted, and it is incumbent upon our industry now to up the game on efficiency... India will have to think about how to give the US much bigger access to our market as well," he added.
Under the imposed tariffs, goods from India will face a 25 per cent tariff on steel, aluminium, and auto-related goods and no tariffs on pharmaceuticals, semiconductors, copper, or energy products.
According to the experts, the tariffs imposed on Indian goods exported to the US present a dual-edged scenario for India's manufacturing sector.
On the one hand, the relatively lower tariffs on Indian goods compared to those from China, Thailand, and Vietnam create a favourable arbitrage opportunity for Indian exports.
For the remaining products, India will be taxed a reciprocal tariff of 27 per cent and not 26 per cent, as reported.