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New Delhi [India], March 24 (ANI): Amid concerns over US President Donald Trump’s tariff policies, a report by Motilal Oswal suggests that India has the opportunity to strengthen its domestic industries.
The report mentioned that while the tariffs pose challenges such as rising costs, exchange rate fluctuations, and potential losses in exports, they also open avenues for India to focus on self-reliance and boost local production.
“While concerns persist regarding escalating costs, exchange rate volatility, and potential ramifications for exports, India can capitalize on trade tensions and fortify its domestic industries,” the report said.
The US has imposed heavy tariffs on Indian exports in recent years. In 2018, tariffs of 25 per cent were levied on USD 761 million worth of steel and 10 per cent on USD 382 million worth of aluminum imported from India.
These higher costs made Indian products less competitive in the US market, leading to a 46 per cent decline in steel exports within a year. With American buyers opting for cheaper alternatives, Indian businesses suffered losses.
Another key concern for India is the impact of trade tensions on its currency. The report added that India imports 87 per cent of its crude oil, paying in U.S. dollars.
A weaker rupee due to capital outflows triggered by global trade disputes would make oil imports costlier, putting pressure on India’s economy. A prolonged tariff war could shrink India’s GDP by 0.3 per cent, the report warns.
Despite these challenges, India can turn this situation into an opportunity. Historically, India has maintained higher tariff rates than other major economies. By strategically using import duties and strengthening domestic industries, India can reduce its dependence on foreign goods.
The report highlighted that the trade conflict should push India towards manufacturing self-sufficiency and boosting exports in sectors less affected by tariffs.
Trump’s policies aim to balance protectionism with maintaining U.S. competitiveness in the global market. While this creates uncertainty, as per report India can use the situation to its advantage by promoting domestic production, encouraging local investments, and improving trade agreements with other nations. (ANI)
India to drive 6 pc of global trade growth, securing third place worldwide behind US and China: Report
New Delhi [India], March 23 (ANI): India will make a significant strides in the global trade over the next five years, contributing about 6 per cent in the world’s trade growth, just behind China at 12 per cent and the United States at 10 per cent, as per a joint report by DHL and the New York University Stern School of Business.
The latest DHL Trade Atlas 2025 anticipates that in five years, India will retain its third-place rank on the scale dimension as well as jump 15 spots to the 17th position on the speed dimension as its compound annual trade volume growth rate rises from 5.2 per cent to 7.2 per cent.
The report highlighted that India was only the 13th largest participant in international trade in 2024, but its trade volume grew at a 5.2 per cent compound annual rate from 2019 to 2024, while global trade grew at only a 2.0per cent rate.
“India’s rapid trade growth reflected both its swift macroeconomic growth and its increasing participation in international trade,” the report added.
“The Trade Atlas underlines India’s rapid expansion in global trade, positioning the country as a critical hub connecting the east and west. While we anticipate trade volume growth and an increase in global trade share, we remain cautiously optimistic about the future given the global economy’s general volatility,” said R S Subramanian, SVP South Asia, DHL Express.
Interestingly, the report says that while China is often viewed as a more trade-oriented economy than India, “India’s goods trade-to-GDP ratio was almost as high as China’s in 2023, and India’s trade intensity exceeded China’s when considering trade in both goods and services.”
Backing its projections, the report added that the high expectations for India’s future trade growth are reinforced by large new commitments by foreign companies to invest in India’s manufacturing sector.
In 2023, India ranked second worldwide (after the U.S.) as a destination for announced greenfield foreign direct investment, and manufacturing has become the most prominent business function for this investment in India, the report mentions.
The report highlights that emerging Asian economies such as Vietnam, Indonesia and the Philippines including India are expected to see especially strong growth. The South Asia as well as Southeast Asia regions are also set to outperform other regions in terms of trade growth, the report added.
“With the ongoing diversification of supply chains that continues to reshape the commerce landscape, Asia has steadfastly emerged as a key player in the global market,” said Ken Lee, CEO – Asia Pacific, DHL Express. (ANI)
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