India To Not Join Any Unified Response To US Tariffs #IndiaFinance

India will not be part of any coordinated global response or retaliation against the latest round of tariffs imposed by the United States, government officials told NDTV Profit.

The government will instead adopt a measured, independent approach, choosing dialogue and strategic trade realignment over immediate retaliation.

New Delhi is currently exploring Free Trade Agreements with countries such as Bahrain and Qatar to widen its trade footprint and offset any potential disruptions. Officials said all sectors and products are on the table as part of ongoing trade negotiations, including those impacted by recent US measures.

While some sectors—such as marine products and gems and jewellery—may face short-term challenges, the government expects these industries to diversify export destinations without significant impact. Officials also clarified that India is reviewing all policy tools to address anti-dumping concerns.

Despite the tariffs, India does not foresee any major dent in export momentum. Exports in FY26 are projected to surpass FY25 levels across both merchandise and services. Officials remain confident that demand in the US market will stay resilient, citing falling energy prices, a significant gap between retail and import prices, and tax cut promises by US President Donald Trump.

India also believes it is well-positioned compared to competing economies that have been more directly affected by the US tariffs. India’s first mover advantage with respect to bilateral trade agreement negotiations will also play out in favour, the officials said.