Amid delays in the US-India tariff agreement, India is adopting a China-style export diversification strategy. After finalizing a trade deal with Oman, India is now in the final stages of negotiations with the European Union, its second-largest apparel export market. Currently, Indian apparel exports face 8–12% import duties in the EU, unlike Bangladesh, Vietnam, and Turkey. Amidst the delay in US-India Tariff Agreement, India is now working on Export Diversification Strategy like China. After the Trade Agreement with Oman, negotiations with EU are now in the final stages. EU is India’s second largest Apparel Export Market, where currently 8–12% Import Duty is imposed on Indian Products. Countries like Bangladesh, Vietnam and Turkey do not have to pay this fee.

Soon after Russian President Putin’s visit, former US President Donald Trump has once again hinted at imposing new tariffs on India – this time targeting India’s rice export. Trump says that many countries including India are dumping cheap rice in America, causing huge losses to American farmers. He has indicated that the US administration is considering new tariffs on Agri Products, which may mainly include Fertilizer from Canada and Rice from India. Meanwhile, America has also announced a bail out package of 12 billion dollars for its farmers. The direct impact of this news was visible on Indian Rice Stocks—Shares like LT Foods, GRM Overseas and Sarveshwar Foods fell by 7%. Especially LT Foods, whose 46% revenue comes from the US market, and its Golden Star in the US is America’s No.1 Jasmine Rice Brand. India is the world’s largest rice producer, with a production capacity of 150 million tonnes and a share of 30.3% in global exports. India exported 234,000 tonnes of rice to the US in FY24, worth ₹2,849 crore. The news of this possible tariff is coming at a time when talks on Trade Agreements between India and US are already stuck. Agri products remain the biggest bottleneck between the two countries. New tariffs could make trade talks even more complicated.

India’s 50% TARIFS is going to be affected by India about ₹ 4.22 lakh crore. In response, the Modi government has launched special outreach campaign in 40 big countries, in which countries like Germany, France, Italy, Spain, Netherlands, Poland, Canada, Mexico, Russia, Belgium, Turkiye, UAE and Australias will be targeted. Under this campaign, Quality, Sustainable and Innovative Textile Products will be promoted in these markets to compensate for the damage caused by US and export hubs like Surat, Panipat, Tirupur, Bhadohi get support. India’s Textile Export is currently only 5-6% in the market of these countries, while India holds less than 4% stake in Global Textile Trade. India is trying to further strengthen its position with Free Trade Agreements and China Plus One strategy.