Boston Consulting Group said that if the US imposes a 20 percent trade duty, India will face additional duties of more than $14.6 billion. Along with India, the ASEAN region is also most affected by the current geopolitical changes.
India’s trade is projected to grow at an impressive annual rate of 6.4 percent to reach $1.8 trillion by 2033, according to a Boston Consulting Group (BCG) report. Experts said India is set to redefine its role in global trade with a projected annual growth rate of 6.4 per cent in both GDP and trade.
US imports from India totaled US$84 billion in the year 2023. And India benefited from a lower effective US tariff rate of three percent. The decision of 20 percent tariff will have the biggest impact on India’s biopharma and auto parts imports. The import rate on these two sectors will increase by more than three billion dollars. According to the report, global trade is expected to reach $29 trillion by 2033. But US trade rates could cause a dramatic change in the business outlook. The Global South, which includes 133 developing countries, is set to play a more prominent role in global trade. The group currently accounts for 30 percent of global trade. The US, Mexico and Canada are strengthening as a flexible trading bloc.
