Diversify IT exports, reduce import duty, GTRI suggests

New Delhi: India should diversify its IT exports to mitigate risks arising from potential tariffs under the Trump administration as a significant portion of India’s IT export revenue comes from the US, think-tank Global Trade Research Initiative (GTRI) said Sunday.

This is part of a five-pronged strategy to navigate a potential trade era under incoming US President Donald Trump.

Lowering import tariffs, strengthening its data policies, rejecting the IPEF trade pillar and boosting Make in India are the other four suggestions for India.

In a report, GTRI also highlighted that Mexico, Canada and the Asean benefited more from the US-China trade war, initiated in 2018, than India, insisting that New Delhi should strengthen its domestic supply chains, produce critical intermediates to reduce reliance on China, and improve cost efficiency and ease of doing business to enhance export competitiveness.

GTRI also emphasised that there is a need for India to strengthen its data policies, which resist external pressures to share domestic data freely, and maintain its rejection of the Indo-Pacific Economic Framework for Prosperity (IPEF) trade pillar, which could constrain India’s ability to shape its digital and labour policies.

With Trump returning as US president, the think-tank said the evolving trade landscape presents significant opportunities for India. Trump’s plans for new tariffs targeting Mexico, Canada, China and others could work to India’s advantage.”India also benefited significantly, with US imports from India increasing by $36.8 billion during this period, rising from $50.5 billion to $87.3 billion,” GTRI said, adding that this made India the sixth largest contributor to the rise in US imports.