The world’s most powerful country United States President Donald Trump has announced a mutual American tariff on several countries around the world. They have made it clear that they are going to implement this fee from April 2. India is also included in the list of tariff countries. Matteric tariffs can also be very harmful for India. Trump’s tariffs will particularly affect India’s economy as America is the second largest trading partner in India. Let’s know which sectors of India will be affected by Trump’s tariff?
American tariffs can affect some areas of India. These include IT, pharmaceuticals, automobiles, textiles and steel areas.
1. Impact on IT area
India’s IT sector is highly dependent on the US, companies like TCS, Infosys, Wipro and HCL get large amounts of business from the US. Trump’s potential tariff policy and change in visa regulations can make it difficult for IT companies to get new projects. If the conditions of the H-1B visa are strict, it will be difficult for Indian professionals to work in the US, which will affect the business growth.
2. shock to the pharmaceutical sector
India is the largest supplier of generic drugs to the United States. Indian pharmaceutical companies (Sun Pharma, Dr. Reddy’s, Cipla, Lupine) earns billions of dollars from the US market. If the Trump administration imposes more tariffs on Indian medicines, their prices may increase, which will have a direct impact on exports. Additionally, the export capacity of Indian pharmaceutical companies may be affected if the FDA (US Food and Drug Administration) rules are tightened.
3. Challenge of automobile sector
America is an important market for companies like Tata Motors, Mahindra and Maruti Suzuki. If Trump increases import duty, Indian car companies will have difficulty in selling cars in the US. Electric vehicles and auto component sectors may also be shocked, which may cause investment to fall.
4. Impact on textile industry
The Indian textile and apparel industry exports to the US on a large scale. If the Trump administration imposes high tariffs on Indian textiles, Indian companies can lag behind in price competition. Competitive economies like Bangladesh and Vietnam can benefit from this.
