India can offset US tariff impacts through trade diversification

India's exports to the US may fall by 3-3.5% if the US imposes reciprocal tariffs. However, a report from SBI Research suggests that increased trade diversification and new routes could help offset this decline. India is expanding its export base and negotiating multiple Free Trade Agreements (FTAs) to adapt to global supply chain changes. The country has signed 13 FTAs in the past five years and is in talks with the UK, Canada, and the EU. Additionally, India aims to strengthen its role in global supply chains by utilizing alternative trade routes from Europe to the US via the Middle East. This strategy is part of India's efforts to boost export-oriented domestic manufacturing.