US Tariffs a 'Call for Action' for India to Boost Competitiveness: PwC

The latest round of US tariffs might not instantly impact India, but it has conveyed a clear message to Indian producers to enhance their efficiency and scale operations. That’s the message expressed by Sanjeev Krishan, Chairman at PwC India, who referred to it as a "call for action" and a reminder that India needs to enhance its global competitiveness.

US President Donald Trump announced reciprocal tariffs that consist of a 10% baseline tax on all imports, a 34% import duty on China, and a 27% tariff on India.

In an interview with CNBC-TV18, Krishan stated that although several nations, such as India, are under pressure, the priority for India should be to concentrate on long-term advancements. “This is something which is going to happen to multiple countries… we need to focus on our competitiveness on a go-forward basis,” he said.

Krishan highlighted that although India might not encounter the highest tariffs relative to countries like Vietnam or Bangladesh, depending on others being hit harder is not a sustainable strategy. “Inefficiency in production anywhere… may help in the short term. But that’s only going to be in the short term,” he said, adding that India must think bigger and more efficient. “Big can be beautiful and big can be better.”

Amitendu Palit, Senior Research Fellow at the Institute of South Asian Studies, National University of Singapore, cautioned that although the immediate effects of the tariffs might be minimal, the indirect consequences could be significant. “US growth is going to shrink… there’s going to be a contractionary effect across the board,” he said, pointing to global supply chains and inflation trends that could affect demand and exports more broadly.