India's Strategic Advantage in US Market

India is poised to significantly increase its market share in the United States, thanks to recent changes in Washington's tariff policies. According to Niti Aayog's latest report, India stands to benefit in over 100 key product categories, leveraging favorable tariff differentials.

Key Highlights:

India is expected to enhance its competitiveness in 22 of the top 30 product categories at the HS-2 level, covering a significant portion of its exports to the US. This shift is attributed to higher US import tariffs on other key trade partners, presenting a golden opportunity for Indian exporters.

Resilience in Q3 FY25 Trade Data

Despite global challenges, India's trade data for Q3 FY25 shows cautious resilience. Merchandise exports saw a 3% year-on-year growth, while services exports surged by 17%, partially offsetting the goods trade deficit.

High-Tech and Digital Services Lead the Charge

India's high-tech exports reached $80.6 billion in 2024, with electrical machinery and parts dominating the sector. In the realm of digitally delivered services, India ranked as the fifth-largest exporter globally, showcasing the strength of its IT and professional services.

Future Steps:

Niti Aayog emphasizes the need for India to deepen its integration into global value chains and expand incentive schemes to labor-intensive sectors. A potential deal with the US could further bolster India's export footprint, focusing on digital trade and mutual recognition of standards.