ITC Chairman Sanjiv Puri stated that India is in a far better position to handle the disruptions caused by Trump’s tariffs because talks are moving quickly to conclude an FTA with the US. With the exception of China, which is subject to a 125% duty, US President Donald Trump placed reciprocal duties on a number of nations, including India, which he later delayed by three months. Nonetheless, there will still be an extra 10% tax on shipments to the US. Now, on July 9, the reciprocal tariffs will go into effect.
Puri responded, “It will be difficult to say how it will evolve, but India will be much better placed in this,” when asked how such tariffs would affect the home business. “It is hard to predict how it will develop, but I believe that India will be in a much better position at the end of it because we do see the possibility of several FTAs being inked, which industry has been looking forward to for some time, hopefully during the year, whether it is the EU, UK, and, of course, the US, where there is, dialogue, discussions, happening at a faster rate,” he said.
Since March, the US and India have been discussing a bilateral trade agreement (BTA). In order to more than double bilateral commerce to USD 500 billion by 2030, both parties have set a goal to complete the first phase of the agreement by fall (September–October) of this year.
Although there may be some short-term challenges facing India’s consumption-driven economy, Puri pointed out that the country’s competitiveness, digitization, and future-ready portfolio have a lot to offer.