The Federation of Indian Export Organisations (FIEO) stated that the recent 10% Section 301 tariff imposed by the US on imports from India is unlikely to significantly affect the country’s export competitiveness. FIEO President S.C. Ralhan emphasized that India’s position is relatively favorable compared to other exporting nations facing higher tariff rates.
Ralhan highlighted that India is not singled out under the new US measure, as several competing countries like China, Vietnam, Thailand, Türkiye, the UAE, Brazil, and South Africa face higher tariffs. He mentioned that India’s direct competitors in labor-intensive sectors are also subject to the same 10% tariff, ensuring relative competitiveness for Indian exporters.
Indian exporters might benefit from trade diversion in product segments where rival exporting countries face a higher 12.5% tariff. Even a small differential in tariffs can influence sourcing decisions in competitive markets, especially if Indian exporters offer quality products, reliable deliveries, and stable supply chains.
FIEO stressed that the US tariff is part of a broader country-level policy affecting multiple economies and should not be seen as a negative judgment against Indian exporters or products. The organization advised exporters to evaluate the impact of the new tariff on a product-wise basis, considering US duties, available exclusions, and the tariff treatment of competing supplier countries. It also recommended strengthening supply chain compliance and investing in quality, innovation, and value addition to seize emerging opportunities in the US market.
