US tariffs: Bilateral negotiations provide collateral benefits to India, says SBI report. Both nations plan to sign this year a new ten-year ‘Framework for the US-India Major Defence Partnership in the 21st Century’ Both countries aim to more than double the total bilateral trade to $500 billion by 2030. The US is India’s top export destination, accounting for 17.7 per cent share of total exports in FY24. India has diversified its exports kitty, pitched value addition, exploring alternate areas and works on new routes that transcend from Europe to USA via the Middle-East, redrawing new supply chain algorithms that foster strategic inclusivity, it emphasised. The U.S. tariffs on Indian exports have remained relatively stable, but India’s tariff adjustments appear to be more dynamic, the report showed. It also estimated the likely fall in Indian exports if USA imposes a retaliatory tariff of 15 per cent (3x the present aggregate) on India. This helps in capturing sensitivity of exports to tariff fluctuations.
