India redrawing its global trade map to bypass US tariffs

Faced with steep tariffs imposed by the United States government, India is huddling with export promotion councils and manufacturers to find a way to rework the country’s exports strategy, two government officials, aware of the development, said.

- BYS VENKAT NARAYAN

The development comes on the back of a deadlock in bilateral trade agreement (BTA) negotiations between India and the US, which the two countries have been grappling with since June.

The new plan involves diversifying into markets such as the UK, with which India recently signed a Free Trade Agreement (FTA), and the European Union (EU), where negotiations are in the final stage and a deal could be signed before the end of the year, said officials cited above on the condition of anonymity.

India’s plan will also focus on sector-specific challenges and policy measures to support exports, including exploring new markets with the help of Indian missions overseas, the officials said. The government sees strong export potential in regions like Saudi Arabia, France, Vietnam, the Netherlands, Mexico, and Ethiopia, among other countries.

The review will additionally focus on India’s growing competitiveness gap with Bangladesh and with ASEAN countries, such as Vietnam and Indonesia, which have received significant tariff relief under the latest US executive order.