Coping with US tariffs

Latest trade data indicates the need for diversification

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THE FOCUS OF attention on the latest trade data for Novemberhas been unduly on India's export performance to the US despite the 50% tariff disruption.As these punitive duties remain unchanged, it would be e premature to draw strong inferences on the resilience of our exports during that month. India's shipments to the US this fiscal to November were up by 11.4% year-on-year (y-o-y) while overall merchandise exports grew by only 2.6%. Overall exports clearly are buffeted by adverse global headwinds. Trade diversification is imperative. India's exports to the US this fiscal experienced a two-phase trend with two consecutive months ofy-o-y decline of 12.6% in September-the first month when 50% tariffs kicked in-and 8.6% in October followed by a sharp surge to 22.6% in November. Nearly 85% of India's exports to the US in November came from sectors that first saw a decline and then staged a recovery, according to the Global Trade Research Initiative. Gems and jewellery reflected this pattern dropping to $202.8 million in September before rising to $406.2 million in November.