INDIAN TRADE POLICY needs to prepare for navigating complex challenges in 2025. The challenges will arise from a combination of factors. These include President Trump's assumption of office as the US President; a stagnation in global economic growth and consequent lower demand for manufacturing exports; possibilities of far-reaching political changes impacting trade with major partners; and a lower rate of domestic economic growth.
President Trump's decisions on tariffs will impact prices of various exports to the US. For India too, the tariffs will be meaningful given that the US is its largest export market. If Trump tariffs are levied on several of the US' major trading partners, then an interesting scenario will emerge where these partners will explore ways of circumventing tariffs for accessing the US market. The likely outcome, as already demonstrated by China, will be to relocate production to locations from which exporting to the US won't attract tariffs. India might need to explore similar options too.
Tariffs will impact export competitiveness with US consumers finding the products becoming more expensive. The erosion of market access in the US will be compounded by slower economic growth in many parts of the world and its effect on demand for Indian exports. Some indications in this regard are already visible through lower growth of traditional "hot" Indian exports like gems and jewellery, and petroleum products. More political turbulence, including changes in governments in India's key export markets in Europe and West Asia, can further affect the prospects of exports. A projected lower level of domestic economic growth will impact capacity utilisation of manufacturing exports, which, as it is, will be impacted by the other mentioned changes.
Denne historien er fra January 01, 2025-utgaven av Financial Express Kochi.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra January 01, 2025-utgaven av Financial Express Kochi.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
MRF: Crude prices, Re slide driving surge in tyre prices
RISING CRUDE OIL prices and a depreciating rupee are driving up tyre costs, according to Arun Mammen, vice chairman and managing director of MRF.
PLFS reflects positive employment trends
As India strides towards the vision of Viksit Bharat, empowering youth with the right skills and work experience continues to be a priority
Davos Turns Into Fortress
GIVEN THE HIGH-profile nature of the event, beginning Monday, the security is both discreet and visible and comprises snipers, drone jammers, regular frisking and checking and round-the-clock patrol.
Petroleum products exports rise 2% in April-December
INDIA'S EXPORTS OF petroleum products grew marginally by 1.5% to 47.5 million tonne during April-December, compared to 46.8 million tonne in the same period last fiscal, according to data from the Petroleum Planning and Analysis Cell.
TN loses investment body chief ahead of meet
VISHNU VENUGOPALAN, MD & CEO of Guidance Tamil Nadu and a key bureaucrat instrumental in attracting major investments, including Cisco, Jabil, and Ford Motor's re-entry into the state, has exited the agency, multiple sources told FE.
Fighting halts in Gaza as ceasefire begins, Hamas frees 3 hostages
PALESTINIANS POURED INTO the streets to celebrate and return to the rubble of their bombed-out homes on Sunday, and Hamas released the first three hostages under a ceasefire deal that halted fighting in Gaza.
Trade Partner Or Adversary?
India must think beyond China-Plus-One strategy as the world trade order is rapidly changing
Comfortable design for 24/7 wear
It tracks fitness, sleep, stress & other key health vitals
Tech firms face setback as Wi-Fi spectrum allocation plan nixed
DoT DECISION MAY DELAY ADOPTION OF NEXT-GENERATION DEVICES
Mkt volatility may force life insurers to rethink ULIP plans
A prolonged volatility in the stock markets could dampen the investor appetite for unit linked insurance plans (ULIPs), prompting life insurers to shift the focus towards guaranteed income and pure protection plans like term insurance, industry experts said.
