Global Markets in Turmoil

US President Donald Trump's announcement of reciprocal tariffs has sent shockwaves around the world, affecting major economies. Starting April 5, 2025, the United States will enforce a uniform 10% duty on all incoming foreign goods, with a matching tariff framework to follow.

India's Position in the Global Economy

India is positioned as one of the least vulnerable economies to these changes, with a 26% duty on its goods, which is lower than rates for China, Vietnam, Sri Lanka, and Bangladesh. This article explores India's relative advantage and the minimal impact on its GDP and households.

Impact on Households and GDP

The impact on India's GDP is estimated to be just around 0.19%, with a minimal negative effect per household. In scenarios without retaliation, India could even see a positive impact on its GDP.

India's Strategic Advantage

Experts like Sujan Hajra highlight India's robust domestic fundamentals and lower dependency on exports as key strengths. With potential supply chain shifts, India could emerge stronger from global trade tensions.