India to gain in US market as latter ups tariff on nations: NITI Aayog

The government should fast-track the planned free trade agreement with the United States with time-bound goals to resolve non-tariff barriers and finalise digital trade rules on data flows and e-signatures to support services exports, it recommended in its latest quarterly trade report.

The government think tank foresees favourable differentials in over 100 key product categories.

“India is expected to gain competitiveness in 22 of the top 30 product categories at the HS-2 level, covering 61 per cent of its exports to the US and 68 per cent of total US imports in these categories,” the report said.

At a more detailed HS-4 level, India has a favourable tariff differential in 78 of the top 100 products, accounting for around 52 per cent of its shipments to the United States.

The opportunity arises from higher US import tariffs on key trade partners such as China, Canada, Mexico, Vietnam and Thailand.

This policy shift, which includes a baseline 10-per cent duty on all imports since April 2025, presents Indian exporters with a ‘strategic window’ to gain share in sectors, which include apparel and textiles.

Even in six of the top 30 HS-2 product lines where India faces a tariff disadvantage, the gap is just around 1 per cent, keeping it broadly competitive, the think tank noted.

ALCHEMPro News Desk (DS)