Strategising exports post-tariff pause

By aligning with US interests, leveraging global shifts, and strengthening domestic trade ecosystem, India can turn the pause into a launchpad for sustained export-led growth

- AJAY SAHAI

INSPIRED BY DONALD Trump's "Trumponomics" and his declaration that "tariff is the most beautiful word in the dictionary", India and the United States have initiated discussions on the terms of reference for a proposed bilateral trade agreement (BTA). The looming threat of a global trade war, which rattled the American bond market, prompted a 90-day pause in the imposition of reciprocal tariffs — excluding those on China. As the 90-day pause on reciprocal tariffs concludes on July 9, India stands at a pivotal juncture in its trade policy.

The global landscape — shaped by the ongoing US-China tariff stand-off, supply chain realignments, and a strengthening India-US trade relationship — offers India a rare strategic opening.

The key question is: Can India transform this moment of economic uncertainty into a long-term export opportunity?

With US tariffs on Chinese goods reaching up to 245%, American firms are actively diversifying their sourcing strategies. They are pursuing the "China+1" strategy — not just for risk diversification but also as a geopolitical imperative. India is emerging as a strong and viable alternative in sectors such as pharmaceuticals, electronics, engineering goods, apparel, footwear, furniture, and toys.