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India can reduce the impact of higher U.S. tariffs by negotiating with the U.S. to lower import tariffs on select products, increase market access for U.S. farm products, and boost U.S. energy purchases, says rating agency Moody’s
Talks are expected to lead to a trade deal by fall 2025.
India, along with Vietnam and Thailand, faces tariff pressures, especially in sectors like electronics, motor vehicles, food, and textiles.
While India has lower overall exposure compared to others in the region, sectors like food, textiles, and pharma are more vulnerable.
Experts believe India will not face significant negative effects due to U.S. policies, as factors like low crude oil prices, geopolitical stability, and increased technology transfer will offset tariff costs.
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