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India can diversify exports away from US if 100% tariffs imposed: Economist
🇴🇲 Oman /Economy & Trade

India can diversify exports away from US if 100% tariffs imposed: Economist

From Times of Oman · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • India can diversify exports away from the US if 100% tariffs are imposed, with a $200 billion market available in 15 other countries.
  • Economist SP Sharma identified the Netherlands, France, the UK, Latin American nations, Saudi Arabia, the UAE, and Nepal as alternative export destinations.
  • Sharma argued that high tariffs would harm both economies and increase inflation for American consumers.

India possesses significant potential to diversify its exports to countries other than the United States, should Washington impose tariffs of up to 100 percent. Economist SP Sharma stated that a market worth $200 billion exists across 15 other nations for products currently exported to the US.

We have another 15 markets where we can export our same products which we are exporting to the US.

— SP SharmaThe economist highlighted the availability of alternative export markets for India.

Sharma explained that India is not heavily reliant on the US market, despite strong bilateral trade ties. "We have another 15 markets where we can export our same products which we are exporting to the US," he told ANI. He identified the Netherlands, France, the UK, countries in Latin America, Saudi Arabia, the UAE, and Nepal as key alternative destinations for Indian exporters.

If we are growing with US at 10-15 per cent, then our growth rate in exports with other markets is between 20-25 per cent.

— SP SharmaThe economist compared India's export growth rates to the US versus other global markets.

Despite tariff uncertainties and global economic headwinds, India's exports to the US reached $87.3 billion in 2025-26, up from $86.5 billion the previous year. Sharma noted that Indian exporters demonstrated resilience due to strong demand and competitiveness in the US market, particularly for labor-intensive products. He also pointed out that export growth to some alternative markets is outpacing that to the US, with rates between 20-25 percent compared to 10-15 percent for US-bound shipments.

Trade is always for the welfare, trade is not for the tussles.

— SP SharmaThe economist commented on the nature of international trade and the potential impact of tariffs.

However, Sharma stressed the importance of continued strong economic relations between India and the US, noting ongoing negotiations for a bilateral trade agreement. He cautioned that tariffs of up to 100 percent would not benefit either economy. Such measures, he argued, could lead to higher prices for American consumers and contribute to inflation in the world's largest economy, as India is a competitive, low-cost supplier. "Trade is always for the welfare, trade is not for the tussles," Sharma stated, advocating for continued trade engagement over additional tariff barriers.

Such kind of announcements are not in favour of US economy too because they will face the inflation.

— SP SharmaThe economist warned about the inflationary consequences of high tariffs for the US economy.
DistantNews Editorial

Originally published by Times of Oman. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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