NEW DELHI – India faces potential losses of up to $64 billion in exports to the United States amid escalating diplomatic strains and warnings of American trade restrictions. As bilateral relations deteriorate, analysts say Indian exporters could bear the brunt of retaliatory U.S. actions.
Complaints lodged in Washington over India’s trade practices—such as export subsidies, production-linked incentive schemes, and restrictions on certain U.S. goods—have intensified political scrutiny. Experts suggest that U.S. trade authorities may respond with steep tariffs or quantitative restrictions affecting sectors like pharmaceuticals, engineering goods, and IT services.
Indian officials have downplayed the forecasts, claiming that trade diversification strategies and ongoing negotiations will cushion potential fallout. However, business leaders remain cautious, emphasising that uncertainty around U.S. market access could severely impact key export industries.
The looming risk comes at a critical juncture, with Indian exporters already grappling with global inflation and supply chain disruptions. Observers warn that the combination of strained diplomacy and trade remedies could deliver a severe blow to India’s external sector performance unless timely policy responses emerge.
This story has been reported by PakTribune. All rights reserved.