With nearly 70 % of India’s exports facing the newly announced Donald Trump tariff, the Economic Research Research Company urged the government to adopt a double strategy-the targeted support for weak sectors such as textiles and precious stones, and to re-engage the United States through “smart and tactical” negotiations that deal with long agricultural expenses.
In its Economic Economic Paper Ashok Julati, Swlacna Rao and Tanai Sontwal, Icerir said that the United States is still “very large and it is very important to write” as India follows commercial deals with the United Kingdom and the European Union. The authors have argued that the upcoming commercial talks should focus on resolving agricultural issues, especially the United States’ demands for genetically modified GM products, based on scientific evidence instead of ideology.
The report suggested allowing General Motors to mix ethanol or nourishing poultry, noting that although genetically modified soy imports are prohibited in the form of seeds, India imports soy oil. It also recommended discounts in sharp service on non-sensitive farms imports with low domestic product-such as walnuts (currently 120 % of fees), cranberries, berries, and breakfast.
For dairy products, economists have suggested the share of the tariff rate, allowing limited imports in low duties while maintaining a high tariff over that threshold. They have also put forward a system of certificates-like halal-to ensure that livestock from buyers do not feed or pastures.
Besides agriculture, the paper warned that textiles and clothes face the “tariff gap” with competitors who may cost India’s orders unless the benefits, discounts or other incentives are provided. Gemstones, jewelry, herbal products, nutrients and shrimp exports have been identified as high -risk categories, with shrimp producers in Andra Pradesh, West Bengal and Odisha, which were particularly exposed in the short term.
While agricultural exports may face smaller total losses, semi -salted rice may lose the ground against Thailand and Pakistan. The authors have argued that instead of relying on protectionist definitions, India must deal with the current tariff crisis as an opportunity to reform – infrastructure building, invest in research and development, and improve the efficiency of the supply chain “on the 1991 liberation scale”.
The most infected sectors with Trump definitions
Textiles and clothes
More than 30 % of the customs tariff gap will face Bangladesh, Pakistan, Vietnam – the market center is in danger.
Gemstones and jewelry
With a 50 % tariff, the industry warned that “it might reach a stop to work soon.”
Car parts, agriculture, shrimp
Expect export losses, reduce jobs, and requests for requests across these sectors.
Shrimp producers
Andra Pradesh, Western Bengal, Odisha has a very slope value and the loss of her market share.
ICRIERE strategy consisting of 3 points
Smart re -participate in the United States
Pay for the flag -based conversations on GM crops, ethanol corn, dairy quotas, and reaching fair markets.
The targeted relief
Providing urgent benefits, discounts or incentives for the most affected sectors such as textiles and gemstones.
Export diversification
Reducing dependence on the United States – speeding up free trade agreements with the European Union, UK, CPTPP; Expanding trade with Africa, ASEAN.
Politics reforms and the impact of expectations
- Cutting tariffs on low -risk imports such as nuts, berries and grains.
- Moving from protectionism to productivity: investment in research, development, logistics and organizational reforms.
- Economic damage is not at the level of the system, but it is deeply focused in the heavy labor export sectors.
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