The US remains India’s top export destination, accounting for 17.7 per cent of total exports in the financial year 2023-24. Experts believe that this impact can be offset by India’s strategic export diversification, increased value addition, and exploration of new trade routes. India is actively working on alternative trade routes that connect Europe, the Middle East, and the US, reducing logistical costs and improving efficiency. This restructured supply chain approach is expected to strengthen India’s position in international trade despite global uncertainties, according to the report by State Bank of India. The report added that while the US may introduce higher tariffs, India’s proactive trade policies are expected to mitigate the impact, ensuring steady export growth in the long run. It said, \”Our estimates show overall incremental tariff levels even at 15-20 per cent imposed by USA would still limit the impact on exports to US only in the range of 3-3.5 per cent which again should be negated through higher export goals\”
