India’s auto components, chemicals, shrimp, and steel industries are bearing the brunt of the 27% reciprocal tariff imposed by the United States, a government official confirmed. However, the pharmaceutical sector appears to have escaped the impact.
Unlike other nations that have threatened countermeasures, India will take a “measured, calibrated, and professional” approach, another government official stated. Reports from Hindustan Times suggest that New Delhi will not impose retaliatory tariffs on American imports.
Despite the setback, some officials see a silver lining, arguing that India could gain a competitive edge over China, Bangladesh, and Vietnam, particularly in labour-intensive industries. Commerce ministry officials are currently assessing the full impact of the tariffs at the Prime Minister’s Office (PMO) before issuing an official statement.
“With the 27% effective tariff on India, our advantage over China is nearly 54-79%, and we also gain an edge over Vietnam and Bangladesh in textiles exports,” one official noted.
Meanwhile, the BSE Sensex opened 806 points lower but recovered some ground, trading 200.6 points down at 11:07 AM, a 0.26% decline from Wednesday’s close of 76,617.44.
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