&w=3840&q=100)
Navigating US tariffs: Strategic responses for building resilience
While one hopes for a more positive outcome to the negotiations that are likely to continue later this month, a strong need exists for us to build on alternative strategies that support growth, investments and employment. Hence, while the higher tariffs for US markets are a big economic challenge, they also create opportunities for innovative solutions that may take India on a higher growth trajectory.
Export-market diversification: One clear strategy to offset the potential loss of trade earnings from the US market is to diversify India's export destinations. In this context, there are significant opportunities to step up our exports to alternative markets. Africa, for instance, is emerging as a fast-growing destination for India's pharmaceuticals, textiles, digital services, electrical and auto products, as well as agricultural and clean tech goods. Already at about $83 billion, India and Africa have set an ambitious goal of scaling bilateral trade to $200 billion by 2030.
At the same time, expanding exports of gems & jewellery, as well as textiles & garments to the energy-rich economies in the Middle East and Central Asia presents another viable avenue. Trade agreements and Free Trade Agreements (FTAs) also offer scope for broadening India's export reach.
Trade deals: The recently concluded FTA with the UK, along with the ongoing negotiations with EU – which are expected to conclude soon – offer significant opportunities to expand market access for Indian products. Early finalisation of FTAs with Canada and Australia, both major export destinations, would further help diversify India's trade portfolio and reduce overdependence on a limited number of markets. Additionally, expediting FTA with Gulf Cooperation Council (GCC) and pursuing a renegotiation of the existing FTA with ASEAN would provide a much-needed boost to India's trade strategy.
Regional economic and tech integration: Another low-hanging fruit is strengthening regional trade ties and regulatory standards within the grouping of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Working with neighbourhood countries of Bhutan, Bangladesh, Nepal, Myanmar, Sri Lanka, and Thailand, would give a fillip to agricultural exports, besides to pharmaceuticals, textiles and garments, engineering goods, electronics, etc.
In this context, India's leadership in scaling up the Unified Payments Interface (UPI) for cross-border financial settlements could be a game changer for regional trade. When coupled with enhanced regional connectivity projects, infrastructure development would be well-positioned to emerge as a key growth engine for the region – catalysing a virtuous cycle of investments, economic activity, employment and consumption across the region.
Strength of services sector: Importantly, services are less vulnerable to tariffs and India remains a major global exporter in this domain - currently ranked seventh worldwide. IT and IT-enabled services constitute an estimated 50 per cent of India's services exports, followed by business services, medical and education tourism, transport, and logistics related services.
To sustain and enhance this momentum, the development of high-value exports by Indian IT firms, particularly in areas such as Artificial Intelligence (AI), Machine Learning, cybersecurity, cloud-based solutions, and other innovation-driven software development, is imperative.
This is also an opportune time to strengthen exports of telemedicine and online education through edtech platforms, promote greater medical tourism, and attract international visitors especially from Southeast Asia, Japan, S Korea, China, to culturally important destinations such as the Buddhist circuit.
Value-addition in GCCs: An important offshoot of services sector exports is the growing contribution of Global Capability Centres (GCCs), which could play a key role in mitigating the adverse impact of higher tariffs. India has emerged as a global hub for GCCs, which are offshore units established by multinational corporations to carry out strategic business functions in a cost-effective and efficient manner. These functions range from R&D and product development to innovation in technologies and components.
Attracted by India's young, English-speaking, and highly skilled workforce, more than 1,900 GCCs are currently operating in the country. Continued focus on enhancing value addition within these centres—particularly in IT-led innovation and cutting-edge areas such as AI—could contribute over $100 billion worth of innovative products and services by 2030.
Global supply chains: Attracting greater investment into global supply chains remains a critical strategy to counter potential trade losses in the US market. This requires further regulatory easing under the Ease of Doing Business (EODB) framework, especially through targeted partnerships with industrialized Indian states.
Strategic collaboration with member countries of the Indo-Pacific Economic Framework (IPEF) on supply chain alignment—particularly by engaging with the top 50 global multinationals—will also be essential. Integrating with global supply chains will help to build a domestic ecosystem of high-value manufacturing and exports, thereby giving India an edge in global markets.
Overview: In conclusion, while the outcome of our negotiations with US is still evolving, it seems to be a defining moment for the country to expand its trade markets, focus on the FTAs to establish alternative yet stable markets for our export products, strengthen regional trade and connectivity – both financial and infrastructural.
Besides, it is an opportune time to incentivise corporates to move up the value chain, and build domestic capacity for higher value-added goods, whether they be in electronics, pharma, biotech, fintech, AI-driven products, or green tech-based products. Continued growth in the services sector, along with policy reforms to attract global supply chains, will be critical components of the blueprint for transforming the Indian economy toward a higher-growth, higher-employment trajectory.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
4 minutes ago
- The Hindu
The ‘right to repair' must include the ‘right to remember'
In May 2025, the Indian government took a significant step toward promoting sustainable electronics. It accepted a report proposing a Repairability Index for mobile phones and appliances, ranking products based on ease of repair, spare part access, and software support. New e-waste policies now include minimum payments to incentivise formal recycling. These are timely moves. But as India takes steps toward making repair a consumer right, we must also treat it as a cultural and intellectual resource — a form of knowledge that deserves preservation and support. India's digital and Artificial Intelligence (AI) policy landscape is evolving rapidly. Initiatives such as Digital Public Infrastructure (DPI) and the National Strategy on Artificial Intelligence (NSAI) emphasise innovation, data-driven governance and economic efficiency. Yet, the systems that quietly sustain everyday life — especially the informal repair and maintenance economy — remain largely invisible in digital and policy frameworks. In an age of cloud backups and algorithmic processing, it is easy to forget the value of knowledge that cannot be codified. Much of India's repair expertise lives in muscle memory, quiet observation, and years of hands-on improvisation. This tacit knowledge is vital to India's material resilience. From mobile fixers in Delhi's Karol Bagh to appliance technicians in Chennai's Ritchie Street, repairers keep devices working well past their planned obsolescence. 'If we don't fix it, who will?' says a mobile repairer in Ritchie Street. 'People throw things out. But we see what can be made new.' Their tools may be modest and their workshops discreet, but their work reflects deep ingenuity. They restore devices not by consulting manuals, but by diagnosing faults through sensory cues, reusing components, and adapting creatively to constraints. Yet, this ecosystem is gradually eroding. As product designs become less repairable and consumer habits shift toward disposability, informal repairers find themselves increasingly locked out of markets, of skilling programmes, and of policy attention. What risks being lost is not only economic opportunity but also a vast, undocumented reservoir of knowledge that has long supported India's technological resilience. Also Read | India's rising e-waste, the need to recast its management Why tacit knowledge matters 'I learnt by watching my uncle,' says an appliance repairer in Bhopal. 'He never explained with words. He just showed me once, and expected me to try. That's how we pass it on.' Tacit knowledge refers to forms of skill and intuition that are difficult to formalise. In India's repair economy, this expertise is typically passed down through mentorship, observation, and repetition — not through formal training or certification. It is inherently adaptive and context-sensitive, qualities that structured digital systems, including AI, often struggle to replicate. As AI advances, it increasingly draws on insights shaped by this kind of labour. However, mechanisms to acknowledge or equitably involve the contributors of this knowledge are still evolving. The result is a growing imbalance: AI systems continue to improve, while the communities enabling that learning often remain unrecognised. Globally, the Right to Repair movement has gained momentum. The European Union recently introduced rules requiring manufacturers to provide access to spare parts and repair documentation. In India, the Department of Consumer Affairs launched a Right to Repair framework in 2022, followed by a national portal in 2023 covering electronics, automobiles, and farm equipment. Meanwhile, the United Nations Sustainable Development Goal 12 promotes repair as part of responsible consumption. India now has the opportunity to lead by recognising repair not just as a service but also as a form of knowledge work. The blind spot in India's digital policy In 2021-22, India generated over 1.6 million tonnes of e-waste, becoming the world's third-largest producer. The E-Waste (Management) Rules, 2022 introduced Extended Producer Responsibility (EPR) — a principle that makes manufacturers responsible for post-use product management. However, while these rules encourage recycling, they make only a passing mention of repair as a preventive strategy. National skilling programmes such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) focus on short-term certifications for formal industrial roles. Repair work, which requires improvisation, diagnostic skill and creative reuse does not easily fit this framework. Similarly, the National Education Policy (NEP) 2020 celebrates Indian knowledge traditions and experiential learning but offers little guidance on how to support or transmit hands-on repair expertise. Campaigns such as Mission LiFE (LiFEStyle For Environment) promote repair and reuse, but complementary efforts are needed to support the workers who make such sustainability practices possible. While policies now champion circularity, they risk leaving behind the very workforce whose skills make it real. As sustainability becomes a national priority, policymakers and technologists are reconsidering how we design, discard, and extend the life of everyday products. One emerging idea in research is 'unmaking' — the process of taking apart, repairing or repurposing devices after their first use, revealing design flaws and opportunities for reuse. Breakdowns and repairs are not failures; they are feedback loops and sources of practical insight. A discarded circuit board can become a teaching tool. A salvaged phone part can restore someone's access to work or school. A broken appliance can be repaired and reused. Informal repairers perform this work daily. Their labour sits at the centre of the circular economy, where reuse is not an afterthought but a design principle. Recognising them as stewards of sustainability — not marginal figures — can reshape how we think about environmental and digital innovation alike. AI-enabled solutions for repair justice India's culture of jugaad and frugality long pre-dates today's tech-forward policies. Repairers have always adapted across devices and decades, with minimal support. As the country invests in AI infrastructure and digital public goods, it must align these ambitions with the ground realities of repair. Most modern gadgets are built for compactness and control, not repair. According to a 2023 iFixit global report, only 23% of smartphones sold in Asia are easily repairable due to design constraints. To change this, design norms and procurement policies must include repairability from the start. To make technology genuinely sustainable, public policy must consider not only how products are manufactured and used but also how they break down, are repaired, and find new life. A shift toward designing for 'unmaking', where disassembly and repair are anticipated from the outset, should inform both hardware standards and AI-integrated systems. This transition will require coordinated institutional action. The Ministry of Electronics and Information Technology can embed repairability criteria into AI and procurement policies. The Department of Consumer Affairs could expand the Right to Repair framework to include product classification and community involvement. Platforms such as e-Shram, under the Ministry of Labour and Employment, can formally recognise informal repairers and connect them to social protection and skill-building schemes. The Ministry of Skill Development and Entrepreneurship can consider training programmes to account for the tacit, diagnostic nature of repair work, which does not conform to standardised industrial templates. To support this, decision trees can help codify typical repair pathways, while Large Language Models can capture, summarise, and translate tacit repair narratives into structured, shareable knowledge, enabling broader learning without stripping local context or expertise. Supporting this ecosystem is not merely a question of intellectual property or technical efficiency. It is about valuing the quiet, embodied labour that sustains our digital and material lives — an essential step toward a just, repair-ready technological future. As philosopher Michael Polanyi observed, 'We know more than we can tell.' By choosing to remember what cannot be digitised, we preserve the human wisdom essential to a meaningful technological future. Kinnari Gatare is a researcher in Human Computer Interaction (HCI) and a former UX Design Consultant, National Programme on Technology Enhanced Learning (NPTEL), Indian Institute of Technology Madras
Time of India
18 minutes ago
- Time of India
In Ludhiana, MSME body calls for urgent tooling reforms to curb imports, boost local innovation
1 2 Ludhiana: A delegation from the Chamber of Industrial & Commercial Undertakings (CICU) has urged the Indian government to modernise ageing industrial infrastructure and simplify complex support schemes that, they say, are stifling growth in the country's vital micro, small and medium enterprise (MSME) sector. Led by CICU president Upkar Singh Ahuja, the delegation met with S.C.L. Dass, Secretary of the Ministry of MSME, at the Central Tool Room (CTR) in Ludhiana to push for urgent reforms. The discussions focused on revamping the CTR—once a symbol of industrial modernity in the 1980s—now struggling to meet the evolving needs of high-end manufacturing. "When CTR was established, it uplifted Ludhiana's industrial ecosystem by supplying skilled labour and modern tooling solutions," Ahuja said. "Today, it lacks the advanced machinery and material capabilities needed for new-generation industries." Citing the example of reflectors—critical components for the automotive and lighting industries—Ahuja noted that despite rising domestic demand, India continues to import around ₹2,000 crore worth annually. "We must invest in institutions like CTR to build indigenous capacity," he said. The CICU also flagged the overly bureaucratic nature of MSME support schemes. Many smaller enterprises, they said, lack the manpower or expertise to navigate them, effectively locking them out of essential government support. Ahuja urged the ministry to streamline these schemes, making them more practical and accessible for micro and small businesses that form the backbone of regional economies like Ludhiana. Secretary Dass acknowledged the concerns and assured the delegation of the ministry's commitment to strengthening the MSME sector. "Ludhiana's role in India's industrial growth is undeniable," Dass said, as quoted by Ahuja. "The government remains focused on modernising institutions such as the Central Tool Room and supporting structural reforms." Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
New Indian Express
24 minutes ago
- New Indian Express
Over 2 million jobs at risk in apparel manufacturing sector due to Trump tariff
The Indian apparel and textile industry is facing a potential crisis with the latest tariff rates announced by the U.S. government, which industry leaders warn could lead to over 2 million job losses and a significant downturn for the sector. The new US tariff rate for India has been set at 25%, placing it at a significant disadvantage against major competitors like Bangladesh and Vietnam, which have been placed in lower tariff brackets of 20%. Indonesia and Cambodia have an even lower rate of 19%. The Indian apparel industry was comfortably placed with the originally announced reciprocal tariff structure as it enjoyed tariff advantage vis-à-vis major competitor countries. The liberation day tariff announced originally by the Trump administration against India was 26% whereas it was 37% against Bangladesh, 46% against Vietnam, 44% against Sri Lanka and 145% against China. The US is the top destination for garment exports from India occupying 33-34% of share, having exports worth $5.333 billion in 2024-25. India commands 6.1% share in their global import of apparel worth US$85.8 billion The Confederation of Indian Textile Industry (CITI) expressed serious concern, stating that the new tariff structure compounds an already challenging situation. CITI Chairman Rakesh Mehra said, 'The latest U.S. tariff announcement, following which the tariff rates have been substantially reduced for many countries, including Bangladesh, against whom we compete for a larger share of the U.S. market, will compound the difficulties for India's textile and apparel exporters as we will be handicapped by a severe duty disadvantage.' The industry's concerns are echoed by the Apparel Export Promotion Council (AEPC). Mithileshwar Thakur, AEPC's secretary general, noted that the new tariffs "changes everything."
