“Even if the United States deal in the United States is not presented as required …”: SBI on the various advantages of India in India

The State Bank in India (SBI), in a report, assessed the various commercial advantages of India, even if the deal with the United States was not 100 percent desirable. The report added that the high definitions in the United States to China open opportunities for India.

The report added: “We believe that even if the India and the United States deal does not appear as required and the imposition of 10 percent of the additional customs tariffs on India, there are many ways for India to diversify its exports.” According to what was reported, India presented its final “decent show”, which will be now reviewed by the American team. The report added that, according to the indicators, the proposal of India covers the merchandise trade of about 150-200 billion dollars between the two countries.

The SBI report added that the total exports of India are unlikely to be greatly affected, bearing in mind that 387.5 billion dollars in 2024-25 was driven by sectors such as information technology and financial and commercial services.

He added that most Asian countries received a higher tariff than India. The report added: “This opens an opportunity for India to increase its exports to us, especially those commodities in which it revealed a relative feature (RCA).”

India has RCA in chemicals only, which has China and Singapore a higher share of exports to the United States. However, China is now facing a higher tariff than India, which opens opportunities for New Delhi to increase its share of the chemicals of the United States. If India is able to reduce customs tariffs to 25 percent – which is currently for Singapore – India can also get some of its share.

If India can obtain a 2 percent stake in China and Singapore, it can add 0.2 percent to GDP. Shares will add 1 percent from Japan, Malaysia and South Korea 0.1 percent to GDP.

She said that India could acquire a share of clothing exports from Bangladesh, Cambodia and Indonesia as well. If India – which can be acquired by India – which is 6 percent of its share of the United States, can acquire 5 percent of these countries, it can add 0.1 percent to the GDP.

There is also an opportunity to expand their imports to Asian countries, including agricultural commodities, livestock, their products, waste, and scrap (especially mineral scrap) and some products that treat animals and vegetables.

The ASEAN’s Free Trade Agreement is reviewed to eliminate customs tariff distortions as well as the weak provisions of “rules of origin”, which led to the dumping of huge Chinese goods across some other countries. Asean is a major trading partner in India, with bilateral trade reaches $ 123 billion in 2024-25. She added that the share of India’s exports to Asian has decreased over the years, while the import share has been stable.

He added: “India should focus on strengthening its exports to ASEAN and preventing the throwing of goods from China.”

Then there is the agricultural and dairy sector, which is also the point of disagreement between India and the United States. It will be one of the threats of opening the sector in the livelihood of farmers, especially those small that participates in dairy production. The dairy sector is highly supported in the United States, the use of growth hormones and genetically modified organisms is another area of conflict. Moreover, if the dairy sector is opened, the price of milk in India is likely to decrease by at least 15 percent, which may lead to a possible annual loss of 1.03 rupees for dairy farmers, as well as increased milk imports in India by approximately 25 million tons. There will be a transformation in excess producers to consumers if the dairy sector is opened.