Global trade has entered an age of uncertainty, and the impact of U.S. tariffs on India has placed the country’s exporters at the crossroads of disruption and opportunity. With tariffs reshaping supply chains, policy signals fluctuating across continents, and geopolitical priorities shifting overnight, Indian firms are no longer reacting, they’re recalibrating.
GLG’s survey captures this transformation, revealing how businesses are turning volatility into strategic advantage through diversification, resilience, and forward planning.
This report captures perspectives from 64 Indian exporters across key industries such as metals, pharmaceuticals, consumer goods, technology, and machinery. Most respondents are C-level executives and department heads, with 69% heavily involved in corporate strategy and nearly half representing firms with annual revenues exceeding USD 1 billion.
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Policy and Global Shifts in the Export Sector in India
Indian exporters are grappling with uncertainty surrounding U.S. trade and tariffs policies, marking it as the most critical challenge ahead of other major global concerns.
The Trade and Tariffs: India Exporters Report reveals:
- Ninety-two percent of respondents highlight supply chain disruptions, while 88% identify unpredictability in trade and tariffs as top challenges, outranking automation, ESG (Environmental, Social and Governance), and AI.
- Eighty-six percent say these two factors drive top investment priorities in strengthening resilience, with 63% of them taking active measures to mitigate trade-related risks. Trade policies have become integral to long-term planning and strategic positioning.
Highlighting the competitive advantage created by tariff differentials, exporters shared:
“A lot of business from China is migrating to our industry in India and we have already secured multimillion-dollar deals because of U.S.’s relatively favorable tariffs on India as compared to China.”
“1. Shift manufacturing to low-tariff and low-cost countries like India. 2. Use geopolitical allies and do country-level FTAs (Free Trade Agreements).”
Despite challenges, Indian exporters express:
“It gives us opportunity, as the countries affected most by the tariff seek an alternate neutral trade zone like India.”
Export Sector in India Adapts to Change
Indian exporters are navigating a chaotic policy landscape marked by unpredictable changes.
More than half feel confident in short-term planning, yet 42% express zero confidence when forecasting future developments, blaming inconsistent signals and frequent policy shifts.
As one leader put it:
“Diversify market to hedge policy risk, improve trade intelligence and compliance capabilities, more localization, increase e-commerce and digital marketing, more collaboration between policy and market stakeholders.”
To tackle this issue, businesses are relying on industry trade associations, consulting firms, and strategy advisories to predict policy changes. This allows them to better foresee changes and create adaptable approaches.
Operational Impact of U.S. Tariffs on India
Traditional trade routes are becoming unreliable, posing challenges for Indian exporters to sustain growth and performance.
This disruption has forced businesses to rethink their operations, with companies needing to shift supply chains, invest heavily in R&D, and relocate manufacturing hubs to combat uncertainty. Recent data reveals significant actions being taken:
- Thirty-nine percent of exporters are moving supply chains from China .
- Expansion targets include ASEAN (Association of Southeast Asian Nations) (58%) and other Asia-Pacific markets (46%).
- Manufacturing hubs are adjusting their footprint to ASEAN (52%) and other Asia-Pacific regions (44%).
A senior executive stated:
“U.S. trade & tariffs will have impact on raw material that is being imported from the U.S., which reduce our margins in manufacturing in India and thereby we will have to increase overall prices of our goods. China supply-chain being unstable also will impact our pricing strategy in India.”
Nevertheless, Indian exporters remain focused and determined to turn this disruption into an opportunity for securing new global partnerships.
A respondent captured this forward-looking outlook:
“In my view, exports should increase from my company in India since China is offering very unstable supply-chain options and the U.S.’ trade policy unpredictability continues to hamper other policymakers. Hence India/ASEAN, being a stable region, should be able to export more to other countries and at lower tariffs.”
Conclusion
GLG’s findings reveal a significant transformation in the export sector in India . Trade fluctuations, once considered momentary, are now an ongoing aspect of global commerce planning. Indian exporters are responding assertively, expanding their market reach, embracing inventive approaches, and fortifying their supply chains.
In the face of unpredictable policies, India’s exporters are no longer relying on external stability; they are actively establishing it on their own terms.
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