On March 6, the United States decided to reduce tariffs on Indian products, which is expected to promote India's exports. Sectors like textiles, leather, mobile phones, electronics, and jewelry will benefit greatly. If India reduces tariffs on industrial goods, Indian products will become more competitive in the U.S. market.

While reducing tariffs on agricultural products seems difficult, the relief on industrial goods could result in a significant increase in exports. After initiating a global tariff war, the U.S. announced the imposition of reciprocal tariffs on India starting from April 2. Given the Trump administration's readiness to implement such a decision, it is expected that reciprocal tariffs will be enforced with India. However, experts suggest that if India reduces or eliminates tariffs on industrial goods coming from the U.S., it would result in increased Indian exports.

India charges an average of 37% tariff on agricultural items, but reducing this on such products looks challenging due to the involvement of farmers. Experts suggest two possible ways to implement reciprocal tariffs. In the first scenario, for example, if India charges an average tariff of 37% on agricultural items and the U.S. currently charges 5%, the U.S. could impose an average 37% tariff on India's agricultural items as well.

The second approach to reciprocal tariffs would be aimed at reducing the trade imbalance. India exports goods worth around 80 billion USD to the U.S., while the U.S. exports goods worth about 40 billion USD to India. The U.S. would aim to increase trade and close the gap, ensuring that both countries' earnings from tariffs remain balanced. In such a case, India might import more petroleum products from the U.S. than before.