The PHDCCI industry agency said Sunday that reciprocal tariffs imposed by the president of the United States, Donald Trump, will affect only 0.1 percent of Indian GDP, that there are confidence in the competitiveness of prices and the continuous government support.
“Given, the competitiveness of the prices of India and government support policies, we hope that GDP will see only an impact of 0.1 percent,” said PHDCCI in a statement.
Hemant Jain, president of PHDCCI, said that strong domestic manufacturing and the continuous participation of the government through strategic policy measures, including the PLI, the brand in India, and Atmanirbhar Bharat, among others, will support resilience.
The president of the industry agency also supports that the strong industrial competitiveness of India will balance the impact of US tariff ads, and GDP will only see an impact of 0.1 percent in the short term.
However, he added, this deficit will be denied in the medium term as the policy has a total effect.
The “Make In India” initiative of India is promoting significant progress to become self -sufficient. The transition to strengthen domestic consumption will easily absorb the tariff impact. The robust demand of India affirms the sectors such as electronics, renewable energy and pharmaceutical products, among others, said Jain.
“The ease of making the commercial and production liaison incentive schemes (PLI) has strengthened national supply chains and has made India more attractive to investments, which increases manufacturing and competitiveness production,” said Hemant Jain.
“We expect sectors that include precious/ semiprecious stones, textiles/ clothing, marine products, vehicles and pieces and accessories of them, it is expected that iron or steel articles and chemicals see a modern negative impact.”
According to Jain, the pharmaceutical and oil products sectors are expected to see a positive impact.
“The 90 -day pause announcement is positive news for Indian exporters. However, we must be cautious because this is a temporary movement,” Jain said.
India is an important consumer market with diversified supply and value chains. Its emerging commercial partners include the Middle East, South Africa, Latin America and Asian nations.
The president of the PHDCCI said that the demand for Indian products has increased in recent years due to its price competitiveness and better quality.
“In the future, given the sustained economic development of India and the strategic importance, we expect a continuous collaboration with the USA. Through a bilateral Bilateral Trade Agreement well negotiated,” he added.
Posted on April 13, 2025