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India will face a 27% tariff on exports to the United States starting next week. The new rate is lower than the duties imposed on several Asian countries. China, for instance, will face a 34% tariff plus an earlier 20% duty.
Vietnam, Thailand, Bangladesh and Sri Lanka are among the worst-hit countries. India avoided steeper duties due to its smaller trade surplus with the US.
Key Indian sectors will bear the brunt of the tariffs. These include electronics, smartphones, gems and jewellery, textiles and fisheries.
India exports a significant amount of electronics and mobile phones. These account for 14% of total US-bound shipments. Apple assembles iPhones in India using parts mostly imported from other tariff-hit countries. The new tariffs could slow these exports and affect local suppliers.
India is a top exporter of pearls, gems and jewellery. This sector contributes 13% of total exports to the US. Firms like Rajesh Exports and Titan may face revenue pressure.
Pharmaceuticals remain exempt from the current tariffs. These account for 10% of exports. Companies such as Cipla, Lupin and Sun Pharma are major players in this space. Analysts warn that future sector-specific tariffs could still emerge.
India’s textile exports have long faced stiff competition from Bangladesh and Vietnam. With both countries facing higher tariffs, India could gain market share. Firms like Gokaldas Exports and Arvind may benefit from the shift.
According to Emkay Global, India's exports to the US could drop by $30–33 billion. This equals around 0.9% of India’s GDP. Analysts warn of delayed investments and falling demand due to trade uncertainty.
Steel, aluminium and auto component exporters will also face 25% tariffs. Some manufacturers like Samvardhana Motherson can offset the impact using their Mexico-based facilities.
Experts say India must boost export competitiveness and domestic value addition to weather this storm. Tariffs may slow trade, but shifting global dynamics could offer new openings.
