SBI predicts minimal impact of US tariffs on India

SBI Research reports that US reciprocal tariffs may only reduce India's exports by 3-3.5 percent. This decline could be offset by increased exports due to India's diversified trade strategies and new supply routes. India's trade deficit with the US in aluminium and steel products is small. The country is not a major steel importer but is among the top aluminium importers, despite a slight decrease in market share since 2018. India is actively negotiating free trade agreements (FTAs) with the UK, Canada, and the EU, focusing on services and digital trade. These agreements could significantly boost bilateral trade and contribute to India's GDP growth.