New Delhi, Aug 1 || The imposition of 25 per cent tariff on India with penalty is a "bad business decision" but the mysterious forces of global supply chain will auto adjust and cushion the impact, and Indian businesses and firms would do well to reinvigorate the 'Made in India' as a hallmark of unquestionable quality, an SBI Research report said on Friday.
Not surprisingly, the US GDP, inflation and currency face a greater risk of downgrades compared to India, the report noted.
Though the US is India's top exporter (20 per cent in FY25), India has diversified its export destinations, and the top 10 countries only accounted for 53 per cent of total exports.
The top 15 items exported to the US accounted for 63 per cent of total exports. Electronics, gems and jewellery, pharmaceuticals and nuclear reactors and machinery account for 49 per cent of India's exports to the US.
The earlier tariff imposed by the US on such articles varied from 0 per cent (on diamonds, smartphones, pharma products, among others) to a maximum of 10.8 per cent (other bed linen of cotton). Now all of them will face a 25 per cent tariff.