US tariffs on Indian goods: Exporters find new markets
After the US imposed a 50% tariff on Indian goods on August 27, 2024, Indian exporters are switching gears.
They had already begun diversifying shipments of rice, gems and jewelry, and tractors to places like the UAE, Bangladesh, and Italy even before the tariff increase.
The government's got their back with a plan: focus on growing exports in the EU, UK, UAE, Japan, Canada, and Australia soon, while exploring Latin America, Africa, Eastern Europe, and East Asia for bigger opportunities down the line.
Diversion of exports
With these new tariffs, exports to the US have dropped—gems and jewelry alone fell by 20% last quarter.
Meanwhile, exports of gems and jewelry to the UAE shot up by 76%, and rice is finding more buyers in Kenya and Bangladesh.
India's trade ministry is actively scouting for fresh markets so exporters aren't putting all their eggs in one (American) basket anymore.