The new tariff policy declared by US President Donald Trump on April 2 has brought a storm in global trade. Although many countries will be affected by this, from the Indian point of view this situation presents a golden opportunity. The US government has imposed tough tariffs on countries like China, European Union, Japan, Vietnam, which will increase the prices of goods imported in the US market significantly. In comparison, Indian products will remain competitive due to relatively low tariffs (26%).
1. Pratident pricing:
In the US market, India is getting the main competition from countries like China, Vietnam. America has imposed more tough tariffs on these countries. For example, if the basic value of an electronic product imported from China is $ 200, its price will be around $ 264 after 32% tariff. At the same time, if 26% tariff is levied on the Indian product, then its value will be around 252 dollars. The same goods from Vietnam will get a $ 294 due to 47 % tariff. This will make Indian products more economical options for American consumers.
Indian companies, especially in pharmaceuticals, textile, engineering products, and information technology services, have made their mark in the international market on the strength of high quality and innovative technology. As a result, manufacturers of Indian generic drugs consider their products to be economical and reliable at the world level, which can increase their demand in the American Healthcare sector.
The Government of India is working on various incentive schemes, subsidy and easy loan facilities to promote exports. This will help Indian exporters to be in competition in the global market and will strengthen their reach in the US market.
American tariff policy may also increase the demand for products of Indian companies in other countries. For example, Indian textile and jewelery industries are already popular due to their quality and affordable value in European and emerging markets; Now this situation can be converted into profit in America too.
Indian companies in the US market can resort to joint enterprises and collaborative schemes to increase their local presence, ensuring reduction in production cost and quick supply. This strategy will increase the availability and credibility of Indian goods for American consumers.
