U.S. tariff pause gives Indian exporters a break

• The U.S.’s pause on reciprocal tariffs, retaining only the 10% baseline tariff, is expected to provide temporary relief to Indian exporters.

• The added cost of 10% is expected to slow demand in the U.S., making jewellery products more expensive for U.S. consumers.

• The Confederation of Indian Textile Industry suggests the pause will provide a short-term respite and the Central government should intensify engagement with the U.S. for a sustainable solution.

• Export promotion council representatives argue that India’s 125% duty on China is a level-playing field for countries like India, Vietnam, and South Korea.

• They suggest India should create an environment to attract investments and increase the share of exports in the GDP.

• India should be cautious and more stringent on rules of origin for imports due to China’s large production capacities and reserve of raw materials.