Analysts are warning that the higher tariffs risk substantially diminishing the allure of Indian exports to the U.S., compared to regional peers.
“India’s attractiveness as an emerging manufacturing hub will be hugely undermined,” Shilan Shah, deputy chief emerging markets economist at Capital Economics, said in a note when the duties were announced. He estimates that U.S. spending drives around 2% of India’s GDP and the extra 25% tariff is “large enough to have a material impact.”
