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Will lower tariffs be a draw for FPIs?
Mint Bangalore
|April 04, 2025
The global investment landscape is bracing for disruption as the Trump administration rolls out sweeping reciprocal tariffs on nearly all countries.
The baseline 10% tariff rate against all countries will go into effect on 5 April. Indian exports will face a tariff of 27% (in addition to the existing levy), effective from 9 April, lower than many Asian peers but higher than Brazil (10%) and the Philippines (18%). Will foreign portfolio investors (FPIs) weigh tariff differentials against long-term growth prospects and reassess their allocations, and will these lower tariffs alone be enough to lure back foreign capital?
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