Category: international trade
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India’s Textile Sector Under Fire: 50% U.S. Tariffs Shake Export Clusters to the Core
India’s ready-made garments (RMG) sector was already poised for a slowdown, with Crisil forecasting a growth dip to just 3–5% in FY26—about half of earlier projections—due to rising U.S. tariffs . But the game changed dramatically on August 27, 2025, when the U.S. escalated tariffs to 50%. This shift is…
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India’s Garment Exports Face New Headwinds Under U.S. Tariff Shock
India’s ready-made garments (RMG) sector—long a vital contributor to export earnings and employment—is bracing for a sharp slowdown. According to a recent forecast by Crisil, revenue growth is expected to shrink to just 3–5% in FY26, nearly halving from previous levels. The primary reason: new U.S. tariffs that are set…
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India–Peru FTA: A Strategic Boost for Tamil Nadu’s Industrial Sector
As India and Peru move closer to finalizing a Free Trade Agreement (FTA), attention is turning to how this partnership could reshape opportunities for Indian industry. The FTA, expected to cut tariffs and open markets in mining, agriculture, pharmaceuticals, and technology, holds particular promise for Tamil Nadu, one of India’s…
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Export Promotion Mission: A ₹25,000 Crore Push to Shield Indian Trade
India’s export sector is entering a critical phase as global markets are reshaped by protectionist measures, rising tariffs, and tightening supply chain dependencies. Recognising these headwinds, the Government of India has rolled out the Export Promotion Mission (EPM), a ₹25,000 crore package spanning 2025–31. This mission aims not only to…
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Rising Logistics Costs: A New Challenge for Small Exporters to the U.S.
The abolition of the U.S. de minimis exemption has reshaped the landscape for small exporters and MSMEs shipping to America. Once a lifeline for e-commerce-driven trade, the de minimis rule allowed packages valued under $800 to enter the U.S. duty-free, with minimal customs paperwork. For thousands of Indian MSMEs and…
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India–China Trade Deficit: Why Recalibration Is Urgent
India’s economic engagement with China has long been defined by asymmetry, but the latest numbers show just how stark that imbalance has become. A recent study by the Indian Council for Research on International Economic Relations (ICRIER) highlights that India’s trade deficit with China has soared to $99.2 billion in…
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Foreign Direct Investment in EMDEs: Trends, Challenges, and the Way Forward
Foreign direct investment (FDI) inflows to emerging market and developing economies (EMDEs) have been on a steady decline as a share of GDP since the global financial crisis. In the boom years of the 2000s, FDI inflows reached nearly 5% of GDP in a typical EMDE by 2008. Today, they…
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Tariff Turbulence: How U.S. Tariffs on Indian Goods Are Reshaping India’s Economy
On 7–8 August 2025, the United States sharply escalated its trade dispute with India. President Donald Trump announced an additional 25-percentage-point duty on Indian goods because New Delhi continued to buy discounted Russian oil. Added to a 25 % levy imposed in April, this raised the total tariff on several…
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