The Indian government is preparing to assess the economic impact of the 26% tariffs imposed by the United States. These tariffs came into effect on Wednesday, April 9, 2025, under President Donald Trump's administration. The stock market opened in the red, reflecting investor concerns over a possible global trade war. With pressure mounting, the Commerce and Industry Minister, Piyush Goyal, is set to chair a crucial meeting with exporters later today.
High-level strategy dialogue on global trade developments
A strategic discussion is expected to bring together key voices from trade-related bodies, including representatives from export councils and trade organisations. The conversation will revolve around recent international policy changes, with a special focus on emerging trade dynamics involving major global markets.
Stakeholders from the export community may share perspectives on how evolving tariff structures could influence trade flows and market access. There is a growing sense of caution around potential shifts in demand patterns, particularly in some key regions. Concerns have also been raised about the possible ripple effects on export performance, with participants likely to highlight the importance of timely policy responses and collaborative planning.
US market's significance for Indian exports
The US remains India's largest export destination, accounting for nearly 18% of total goods exports, 6.22% of imports, and 10.73% of overall bilateral trade. Any turbulence in this corridor has the potential to disturb India's broader economic stability.
India's merchandise exports fell for the fourth month in a row in February 2025, citing global economic uncertainties as a major factor. The newly imposed tariffs are expected to affect further key export sectors such as shrimp, carpets, medical devices, and gold jewellery.
Export growth shows mixed signals
Between April and February 2024–25, India's merchandise exports touched USD 395.63 billion, showing a marginal rise from USD 395.38 billion in the previous year. Service exports, however, showed stronger performance, rising to USD 354.90 billion compared to USD 311.05 billion in the previous cycle.
Government to recalibrate export strategy
The Union Cabinet is likely to review export policies and explore strategies to reduce tariff impact and boost trade across alternative global markets. This review could include incentives for exporters and diversified trade agreements to shield Indian industries from future disruptions.
With exporters on edge and global trade dynamics shifting, the government's upcoming decisions may play a defining role in shaping India's export resilience.
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