Kriti Upadhyaya
Earlier this month, the United States announced a 27 percent tariff on Indian goods as part of a broader reciprocal trade policy. The move has obviously drawn close attention in New Delhi. And despite seeming a challenge, it may hide a rare opportunity. If India leans into policy boldness, the tariffs could act not as a brake on Indian ambition — but a powerful accelerant for structural reform and global competitiveness.
India has long used tariffs to protect its domestic industries. At 17.1 percent, India's average applied tariff rate remains among the highest in the world. Key sectors from automobiles to electronics to agriculture have long benefited from these protectionist measures and often at the expense of scale and global integration. A moment of external pressure could provide just the jolt needed to course-correct.
A Strategic Opening in the China +1 Landscape
Once implemented, the new tariff regime announced by the United States can reshuffle the competitive landscape across Asia. While India faces an average tariff of 27% on exports to the U.S., other competitors face even higher tariffs: China now contends with 34%, Vietnam 46%, Bangladesh 37%, and Thailand 36%.
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