India is likely to face challenges in countering the US's reciprocal tariffs, with sectors such as autos and pharmaceuticals expected to bear the brunt. According to experts, these tariffs could have significant implications for Indian industries that rely heavily on exports to the US.

The auto industry, for instance, might see a substantial impact, particularly for companies like Royal Enfield, which exports a considerable number of vehicles to the US.

However, the pharmaceutical sector is anticipated to remain competitive despite potential tariff hikes due to India's status as a low-cost supplier of generic drugs.

The US has proposed implementing reciprocal tariffs based on the tariff differentials between countries. This means that if India imposes higher tariffs on US goods than the US does on Indian goods, the US would increase its tariffs to match India's levels.

Goldman Sachs suggests that India's GDP could be affected by 0.1 to 0.6 percentage points due to these tariffs, highlighting the potential economic impact.

Despite these challenges, some analysts believe that the overall effect on Indian exports might be limited. A State Bank of India report estimates that exports could decline by only 3 to 3.5% even with tariffs ranging from 15 to 20%.

India has diversified its exports and is exploring alternative markets and supply chains, which could help mitigate the impact of US tariffs.

Additionally, India and the US are engaged in talks to reduce tariffs on select products, which could further alleviate pressure.

Agencies