India Aims to Forge Export Shield with Africa, LatAm

Government scrambles to mitigate impact of steep tariffs on Indian exports

- Dhirendra Kumar

India is preparing to counter stiff US tariffs by pivoting to new markets and offering incentives for exporters, even as Prime Minister Narendra Modi vows to protect the interests of the country's farmers and fishermen.

The government is scrambling to mitigate the impact of the tariffs, which now total 50% on some Indian goods entering the U.S. The plan, which was discussed in a series of meetings with export councils and trade organizations, is to develop a strategy that doesn't involve retaliation, three people aware of the matter said.

As part of the initiative, India is considering sending trade representatives to "friendly nations" to study their markets and generate demand for Indian goods, one of the people said, speaking on the condition of anonymity.

The government is also looking into setting up trade desks in underserved regions like Africa, Latin America, and Eastern Europe, which could unlock more than $60 billion in untapped export potential.

"These (new) markets are actively looking for reliable and cost-effective suppliers in areas where India, especially its MSMEs, holds a competitive edge—whether it is pharmaceuticals, textiles, engineering goods, agri- and non-agri machinery, processed foods or IT services," said the second person, also on the condition of anonymity.

On 2 August, Mint had reported that the Centre is scrambling to revamp its export strategy as the new US tariffs hit Indian goods and favour ASEAN rivals. India now shares a 50% tariff slab with Brazil, while most other countries face lower tariffs ranging between 10% and 20%.

The move comes after US President Donald Trump announced a new 25% duty on Indian goods for its continued purchase of Russian oil, adding to an existing 25% tariff. The duties are set to take effect on August 27, leaving a window for both sides to reach an agreement.