India Inc must adapt to changing trade policies: Assocham

Sanjay Nayar, founder and chairman of Sorin Investments and president of Assocham, discusses the impact of Trump's tariffs on India's exports and economy. He highlights the resilience of India's economic fundamentals and the strategic shifts businesses must undertake to remain competitive.

Impact of US tariffs on India's exports

US tariffs pressure sectors like textiles and engineering goods, but India's diversified export base and domestic demand-led growth offer insulation. The "China+1" sentiment benefits India, positioning it as a reliable alternative sourcing hub for American buyers.

Preparing for a sharp drop in tariffs

Indian businesses are urged to enhance competitiveness without relying on high tariffs, leveraging FTAs and government initiatives like PLI schemes and GST rationalisation to modernise operations and align with global standards.

Wishlist of reforms for long-term competitiveness

Key reforms include stable policy frameworks, judicial and contract enforcement reforms, and increased investment in people, R&D, and capability-building to foster innovation and job creation.

Addressing concerns about Indian startups

While many startups have prioritized scale over innovation, India has seen success in fintech, logistics, SaaS, and health-tech. The next wave must focus on deep tech and industrial innovation to solve problems at population scale.