The countdown of US President Donald Trump has started. The sample of what the tariff of Trump can have, all of us saw the decline in the stock market on Tuesday. The Sensex and Nifty saw a decline of up to two percent. The most hit in the stock market of the sector in the stock market, which the sectors could have the most impact on this tariff.
In the coming days, these Rasiprockle tariffs can shake the major export sector and put the Indian stock market in more turmoil. If Trump announces less tariffs from estimates, Sensex and Nifty may rise under the leadership of export-oriented areas including pharma and IT. Conversely, the market may decline further due to severe tariffs.
Global Strategy Operations Ross Maxwell in VT Markets said in a media report that India historically imposed more taxes on American goods than the US tariffs. This means that India is one of the main targets of Trump’s tariff reality. Its effect can be seen in the biggest impact in pharmaceuticals, automobiles, agriculture and textile industries. Which can cause loss of billions of rupees.
While India is trying to negotiate a diplomatic solution. Some experts fear that retaliation from other countries may be transformed into a large scale trade war. Sachin Gupta, executive director and chief rating officer of CARAIGE Ratings, said that the implementation of American tariffs may slow down the speed of the export sector, especially the discretionary expenditure on discretionary expenditure. Let us also tell you which sectors of the country can see the effect of Rasiprockle tariff.
Electronics: India’s biggest export to America in danger
In FY 2024, India’s electronics exports to the US stood at $ 11.1 billion, which is 14% of the country’s total exports to the US. In turn, the US is a staggering 32 per cent of India’s electronics exports. Analysts say that a regional tariff difference of 9 per cent can affect this industry badly. The US has more than half of India’s electronics export mobile phones, which mainly include iPhone assembled in India. If the tariff increases rapidly, then Apple and other makers may need to consider their production strategies in India once again.
Gems and Jewelry: Business of $ 9.9 billion in uncertainty
Gems and jewelery, an area in which India is globally at the top, on which there is a lot of risk. In this category, America’s share in India’s total export of $ 33 billion is 30 per cent ($ 9.9 billion), including chopped and polished diamonds, rooted gold jewelery and diamonds prepared in laboratory. MK Global warned that heavy tariffs on India would cause heavy losses, as it is easy for many of these products to transfer sourcing to other countries with low tariffs/FTAs. If a heavy tariff is imposed on Indian exports, then Indian manufacturers can also be transferred to Singapore, UAE or Oman.
Pharmaceuticals: Important industry standing at intersection
India imports the US generic drug and supplies 47 percent of the share, which makes it an important partner in the US healthcare system. Analysts said that the low value-high volume of India’s generic drug exports shows the low cost of Indian pharma products, which makes it attractive to the US, and so it is difficult to change. Nomura believes that America will not put tariffs on drugs on low cost. Even if it applies, it will be seen less than 10 percent, which can speed up pharma shares. On the other hand, more than 10 per cent tariffs may potentially bring a further decline in pharma shares. Most pharma companies are confident that they can put tariff cost burden on American buyers, which will limit their financial impact.
Automobiles and Auto Components: Local players shock
Since America is not a significant export destination for India’s auto exports, the direct impact on OEMs may be limited, but auto component makers may face risk. In FY 24, India had 27 per cent of the total exports to the US in auto component exports. Local players such as Sona Commentar (43 per cent of revenue from North America) and enrichment Madrasan (18% of the US) have a great risk. Tata Motors may also face effects due to Jaguar Land Rover (JLR), which receives more than 30 percent of their sales from the US. Analysts said that due to no manufacturing base in the US, JLR would be subject to auto tariffs, affecting profits.
Textile and Apparel: 28 percent of exports to America at stake
In FY 2024, the US had a total of $ 9.6 billion in India’s textile and apparel exports, which is 28 per cent of the total export of the industry. This sector is facing competition from countries like Bangladesh and Vietnam, which can get cost benefits when Indian goods are expensive due to tariffs. MK analysts said that if mutual tariffs are installed at a broad regional level, then India’s textile and apparel exports would be the worst affected.
Impact on IT shares
Although the tariff is unlikely to have a direct impact on Indian IT service providers, investors are worried that the trade war may affect American Economic Development. If the American economy slows down, discretionary expenditure will also be affected and in return the client budget of Indian software exporters will be affected.
Markets are waiting for the final decision
The flow of foreign institutional investors (FIIs) is dependent on the declaration of tranna, so the markets are ready for participation. Despite uncertainty, some analysts believe that India’s strong corporate balance sheet and ongoing trade toll can help reduce the pressures. The fall in trade deal and rupee may provide some relief. Additionally, India’s diverse export basis ensures that not all industries will be affected equally.