India Gains Edge in US Market Under New Tariff Regime
ECONOMY & POLICY

India Gains Edge in US Market Under New Tariff Regime

India is poised to gain a strategic edge in the United States market under the evolving US trade and tariff structure, offering an advantage over competitors such as China, Canada and Mexico in key sectors like nuclear reactors, iron and steel, textiles, electricals and vehicles, according to a Niti Aayog report.
The third edition of Niti Aayog’s “Trade Watch Quarterly” for Q3 of FY25 highlighted that, under the current US tariff regime at the HS 2 level, India is likely to gain competitiveness in 22 of the top 30 product categories. These categories account for 61 per cent of India’s exports to the US and 68 per cent of total US imports.
The report stated that India’s relative tariff advantage presents a timely opportunity to expand its market share in the US, particularly in sectors such as pharmaceuticals, textiles, and electrical machinery. It called for agile policymaking to make the most of shifting global trade dynamics.
In categories where India does face a slightly higher tariff burden—six out of the top 30 HS 2 product lines—the average disadvantage is only about 1 per cent, implying that India remains broadly competitive across key sectors.
The report further noted that India stands to benefit from both high-value sectors, such as electronics and nuclear reactors, as well as labour-intensive segments like apparel and textiles, thanks to realigned tariffs imposed by the US on competing nations.
The analysis assumes a baseline additional tariff of 10 per cent on imports into the US from all countries except Mexico and Canada. However, imports from Mexico and Canada face even steeper tariffs of 25 per cent and 35 per cent respectively, while those from China are subject to an additional 30 per cent tariff.
The latest tariff schedule, updated as of 10 July 2025, has been incorporated into the assessment. Notably, reciprocal tariffs of 26 per cent (including the 10 per cent base) on Indian goods have been temporarily suspended until 1 August. If a pending interim trade deal between India and the US is not concluded by then, the US may consider imposing these reciprocal duties.
The report cautioned that the global trade landscape remains fluid, with future tariff actions likely depending on negotiations and trade agreements between the US and its various partners. 

India is poised to gain a strategic edge in the United States market under the evolving US trade and tariff structure, offering an advantage over competitors such as China, Canada and Mexico in key sectors like nuclear reactors, iron and steel, textiles, electricals and vehicles, according to a Niti Aayog report.The third edition of Niti Aayog’s “Trade Watch Quarterly” for Q3 of FY25 highlighted that, under the current US tariff regime at the HS 2 level, India is likely to gain competitiveness in 22 of the top 30 product categories. These categories account for 61 per cent of India’s exports to the US and 68 per cent of total US imports.The report stated that India’s relative tariff advantage presents a timely opportunity to expand its market share in the US, particularly in sectors such as pharmaceuticals, textiles, and electrical machinery. It called for agile policymaking to make the most of shifting global trade dynamics.In categories where India does face a slightly higher tariff burden—six out of the top 30 HS 2 product lines—the average disadvantage is only about 1 per cent, implying that India remains broadly competitive across key sectors.The report further noted that India stands to benefit from both high-value sectors, such as electronics and nuclear reactors, as well as labour-intensive segments like apparel and textiles, thanks to realigned tariffs imposed by the US on competing nations.The analysis assumes a baseline additional tariff of 10 per cent on imports into the US from all countries except Mexico and Canada. However, imports from Mexico and Canada face even steeper tariffs of 25 per cent and 35 per cent respectively, while those from China are subject to an additional 30 per cent tariff.The latest tariff schedule, updated as of 10 July 2025, has been incorporated into the assessment. Notably, reciprocal tariffs of 26 per cent (including the 10 per cent base) on Indian goods have been temporarily suspended until 1 August. If a pending interim trade deal between India and the US is not concluded by then, the US may consider imposing these reciprocal duties.The report cautioned that the global trade landscape remains fluid, with future tariff actions likely depending on negotiations and trade agreements between the US and its various partners. 

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?