Why India's exports to US may surge by $7B
What's the story
India could see a massive boost in its exports to the United States, potentially by as much as $7 billion. This is if the country is exempted from the high tariffs recently imposed by the US on the European Union (EU). The analysis was done by Moneycontrol, which also noted that these gains would have a negligible impact on the EU's trade, accounting for just 1.3% of its total exports to the US in 2024.
Sectoral gains
India could capitalize on seasonal products
The potential boost in India's exports would be largely driven by the pharmaceuticals and jewelry sectors. The EU currently exports almost $3 billion worth of goods in these categories annually to the US. India may also capitalize on seasonal products such as Christmas festivity articles, where it already has a strong foothold with over half of its global exports going to America.
Trade opportunities
Possible gain from these product categories
The analysis also highlighted that India could gain from 117 out of 967 product categories where both the EU and India export to the US. These include dresses and footwear, among others. The study focused on high-volume products (more than $5 million trade) where India's performance is either better or worse than its competitors by at least 50%.
Effects
Impact on Mexico
The impact of the new tariffs is likely to be less severe on Mexico. India's potential gain from this would be roughly $4.1 billion or around 5% of Mexico's US exports.