Government Sees Opportunity, Opposition Expresses Concerns Amidst Export Forecasts

Union Minister for Commerce and Industry Piyush Goyal expressed optimism regarding the impact of recent tariff announcements by US President Donald Trump on Indian industries. He believes these measures present an opportunity for growth, despite the current instability in global markets.

Speaking at the FICCI's 98th Foundation Day celebrations, Goyal acknowledged the varied reactions from different sectors to the tariff announcements. He emphasized his ongoing communication with industry leaders and his confidence in India's ability to benefit from the situation.

Goyal also highlighted the significant growth of India's startup ecosystem. He noted that the "Start-Up India" initiative, launched nine years ago under Prime Minister Narendra Modi's leadership, has led to a dramatic increase in the number of startups, from 400 to over 170,000.

In contrast, Congress leader Shashi Tharoor expressed concerns about the potential negative impact of the US tariffs on India's economy. He stressed the importance of effective bilateral trade agreements to mitigate the adverse effects. Tharoor described the situation as "quite negative," citing the global market's instability and the uncertainty surrounding the tariffs.

A research report by the Global Trade Research Initiative (GTRI) suggests that India could experience a decline in exports to the US due to the tariffs. The report estimates a potential decrease of USD 5.76 billion, or 6.41 percent, in exports to the US in 2025. The research provides a detailed analysis of the sectors that may be affected, offering insights into the challenges and opportunities arising from the new US tariff regime.