Tariff-proof by design, India's space sector stands tall

With smart sourcing, bold reforms, and rising private muscle, India's space sector shows how design and strategy can outlast tariff headwinds.

- BY ANIL PRAKASH

When US President Donald Trump announced a steep 26% tariff on Indian imports, the move sent ripples of concern through Indian industry. Branded as a “reciprocal tariff” in response to what Trump described as high Indian import duties, the measure, effective from 5 April with expanded duties from 9 April, is part of a broader strategy to rebalance trade relationships with countries the US accuses of maintaining unfair barriers.

While textiles, automobiles, and agriculture may feel the immediate heat, India's space sector is better positioned to withstand this pressure. A combination of strategic sourcing, policy support, and expanding global partnerships provides the industry with resilience against such disruptions.

The tariffs are widely viewed as a pressure tactic to push India towards further trade liberalisation, particularly in politically sensitive areas like agriculture. Despite this, the US remains India's largest trading partner, with bilateral trade reaching USD 127 billion in 2023, and both sides aiming for USD 500 billion by 2030. The broader economic relationship—encompassing energy, defence, and technology—remains largely intact.

BUILDING RESILIENCE IN INDIA'S SPACE SECTOR