US President Donald Trump’s announcement of a 27% reciprocal tariff on Indian exports is expected to bring significant changes to global trade and manufacturing value chains. While India Inc. anticipates only a marginal impact on the country’s resilient economy, industry leaders stress the need for a thorough assessment of the long-term effects.

ASSOCHAM President Sanjay Nayar noted that India's export competitiveness to the US market is relatively less affected compared to other nations. However, he emphasised the importance of improving export efficiency and value addition to mitigate the impact of these tariffs.

Key sectors such as automobiles, pharmaceuticals, and IT are likely to face challenges. For example, Indian automobile exporters like Tata Motors and Sona Comstar have already seen declines in stock values following the announcement. Similarly, pharmaceutical exports to the US could experience revenue losses due to higher tariffs.

PHDCCI President Hemant Jain estimated a short-term GDP impact of only 0.1%, which could be offset in the medium term as industries adapt to the new policy.

India is expected to benefit from global supply chain shifts triggered by Trump's trade policies. This could provide opportunities for manufacturing growth, especially as companies diversify away from China.

India is actively negotiating FTAs with nations like the UK, Canada, and the EU. These agreements aim to enhance trade in services, digital economy, and sustainable development, potentially offsetting tariff impacts.

Despite optimism about strengthening strategic ties between India and the US under Trump’s leadership, trade relations remain complex. Trump's "America First" agenda and his labelling of India as a "tariff king" signal continued pressure on New Delhi to lower import duties on American goods. 

Analysts suggest that while collaboration opportunities exist, India must pragmatically navigate trade frictions with its largest export market.

In conclusion, while Trump's tariff announcement poses challenges for India's export-driven sectors, it also presents opportunities for economic reforms and diversification in global trade partnerships. Industry leaders advocate for strategic policy adjustments to minimize disruptions and leverage new growth avenues.

Agencies