India’s world merchandise exports are more likely to take successful of only one.87%, regardless of the USA imposing a 25% tariff on Indian imports, in response to a brand new white paper launched by the PHD Chamber of Commerce and Business (PHDCCI).
The report, analyzing the implications of the tariff that got here into impact on August 7, 2025, pegs the entire potential export influence at $8.1 billion, a comparatively small fraction of India’s complete merchandise exports price $86.5 billion in FY2025. The impact on GDP is projected at a negligible 0.19% (at actual.)
“India continues to be the quickest rising economic system amongst main world gamers. The tariff problem, although notable in absolute phrases, is manageable in its macroeconomic influence,” stated Hemant Jain, President, PHDCCI.
The sectors most affected embody engineering items ($1.8 billion), electronics ($1.4 billion), prescription drugs ($986 million), gems & jewellery ($932 million), and ready-made clothes ($500 million).
PHDCCI has laid out a strategic response emphasizing market penetration, product growth, market diversification, and on-shore manufacturing partnerships to counter the influence and improve export resilience.
“This disruption gives a possibility to speed up export sophistication and geographic diversification,” Jain added.
Regardless of the headwinds, India’s progress outlook stays strong, with the IMF projecting 6.4% GDP progress in 2025-26, the best amongst main economies.
