Sectors in India that will be impacted by US tariffs

President Trump's recent announcement of higher tariffs is expected to significantly impact several sectors in India. Key areas likely to feel the heat include electronics, pharmaceuticals, textiles, agriculture, and automobiles, as these industries face increased costs and potential market challenges. 1. Electronics: Price Increases Ahead Electronics represent India's largest export category to the US, with $11.1 billion in FY24. A significant portion of these exports includes iPhones assembled in India. If tariffs are imposed, iPhone prices may rise, affecting demand and Apple's supply chain.

2. Pharmaceuticals: Potential Price Hikes The US is India's biggest market for pharmaceuticals, with $12.5 billion in exports. India supplies a substantial portion of the US's generic drug imports. Tariffs could lead to increased drug prices in the US, but the sector may be less affected due to its critical role in the US healthcare system. 3. Textiles: Mixed Impacts The US accounts for 28% of India's textile exports, approximately $9.6 billion. While higher tariffs could hurt exports, India might benefit if US tariffs on Chinese textiles remain high, potentially diverting orders to Indian manufacturers. 4. Agriculture: Shrimp and Dairy Exports at Risk Agriculture, particularly shrimp and dairy exports, could face significant challenges. The sector is vulnerable to tariff hikes, which may reduce competitiveness in the US market. 5. Automobiles: Limited Impact on Passenger Vehicles India's automobile exports to the US totaled $2.6 billion, primarily in auto components rather than passenger vehicles. While the sector could face high reciprocal tariffs, the limited export volume of cars means the overall impact may be contained.