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Indian Exporters Advised on Navigating New Global Trade Landscape by Dun & Bradstreet
Amidst intensifying global trade tensions and the United States’ recalibration of its economic engagement, Indian businesses are urged to be prepared for a significantly altered trade environment. A new report from Dun & Bradstreet India, titled “Navigating the Fault Lines of Global Trade: An Indian Perspective,” provides crucial strategic insights for Indian exporters to mitigate rising risks and identify newly emerging opportunities.
Key Insights for Indian Exporters
The report highlights several key takeaways:
- Trade Reset in Motion: Recent US tariff actions signify a major shift in global trade strategy, impacting a wide range of trading partners, including India, through broad, cross-border measures. This necessitates a re-evaluation of current export strategies.
- Margins Under Pressure: Over 3,100 of India’s 3,934 product lines exported to the US now face a 10% flat tariff, with an additional 343 products hit with a 25% rate. Sectors most exposed include iron & steel, machinery, textiles, and chemicals. This puts considerable pressure on export margins.
- Opportunities Taking Shape: Despite the challenges, the report identifies 360 high-potential products where India is well-positioned to strengthen its presence in the US market. Significant opportunities lie in specialty chemicals, pharmaceutical inputs, home textiles, and industrial components.
- Smart Product Strategy: To help businesses focus their efforts, products are mapped into four strategic zones: Sweet Spots, High Risk–High Reward, Margin Traps, and Non-Core.
Strategic Steps for Indian Exporters
According to Arun Singh, Global Chief Economist at Dun & Bradstreet, India is at a pivotal point where strategic steps can transform current global changes into long-term success. As global supply chains diversify and trade policies evolve, Indian exporters have a unique chance to strengthen their role in key sectors. The report emphasizes the need for forward-looking strategies that balance risk management with market expansion, especially in margin-sensitive industries.
For companies like Shiv’s Assets Group, which specializes in exporting building materials, understanding these shifts and adapting strategies is paramount. This includes identifying new markets, optimizing supply chains, and focusing on products with higher potential under the evolving trade rules.
[…] This pessimistic turn is a stark contrast to pre-April, when only 5% of companies expected such a drop. Following US President Donald Trump’s “Liberation Day” announcement of new tariffs in early April, positive export forecasts have more than halved, falling to just 40%. The survey also highlights a rising risk of payment defaults, particularly in the US, Italy, and the UK, further complicating the global trade landscape. […]