$200 Billion Market Across 15 Countries: Potential Strategies for India Amidst US Tariff Threats
The United States is set to impose a 100% tariff on countries purchasing Russian crude oil, raising concerns about the impact on India’s exports. The Trump administration’s decision has prompted discussions on how India will respond. Economist SP Sharma noted that Indian exporters have access to 15 alternative markets, representing a potential $200 billion opportunity beyond the US.
Sharma emphasized that India is not overly reliant on the US market, despite the strong trade relationship. He stated, “We have another 15 markets where we can export our same products which we are exporting to the US.” He highlighted that India’s merchandise exports to the US are approximately $87-88 billion, but there is a significant market available in other countries.
Major market but not the only one
India’s merchandise exports to the US rose to $87.3 billion in 2025-26, up from $86.5 billion in 2024-25, despite uncertainties related to tariffs and global challenges. Sharma pointed out that demand for Indian products in the US remains strong, particularly for labor-intensive goods. He remarked, “Despite these headwinds, our exporters were able to show resilience.”
However, Sharma indicated that the US is not the fastest-growing destination for Indian exports. He noted that while exports to the US are growing at 10-15%, shipments to other markets are expanding at rates of 20-25%. This suggests that India has viable alternatives and is not heavily dependent on the US economy.
Higher tariffs could hurt US consumers too
Sharma also highlighted the importance of the economic ties between India and the US, mentioning ongoing negotiations for a bilateral trade agreement. He argued that imposing tariffs of up to 100% would not benefit either economy, as higher duties could lead to increased prices for American consumers. “Trade is always for the welfare, trade is not for the tussles,” he stated, adding that such tariffs could contribute to inflation in the US. Sharma concluded that continued trade engagement would be more advantageous for both nations than imposing additional barriers.
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