Business News

The impact of U.S. tariff reciprocity on Indian exports is expected to be minimal, despite concerns over trade restrictions, according to a report by State Bank of India. The report highlighted that even if the U.S. imposes higher tariffs in the range of 15 to 20 per cent, the overall decline in Indian exports to the U.S. is estimated to be only around 3 to 3.5 per cent. It said, "Our estimates show overall incremental tariff levels even at 15-20 per cent imposed by USA would still limit the impact on exports to US only in the range of 3-3.5 per cent which again should be negated through higher export goals".As per the report the experts believe that this impact can be offset by India's strategic export diversification, increased value addition, and exploration of new trade routes.The U.S. remains India's top export destination, accounting for 17.7 per cent of total exports in the financial year 2023-24. However, India's export strategy is evolving to reduce its dependence on any single market. With growing trade ties in Europe, the Middle East, and other regions, India is working on strengthening its supply chain networks to ensure stability in exports.While U.S. tariffs on Indian goods have remained relatively stable over the years, India's tariff policies have been more dynamic. The report highlighted that U.S. tariff rate on Indian goods increased from 2.72 per cent in 2018 to 3.91 per cent in 2021 before slightly decreasing to 3.83 per cent in 2022. On the other hand, India's tariffs on U.S. imports have risen more significantly, from 11.59 per cent in 2018 to 15.30 per cent in 2022.This shift in tariff structures reflects a more assertive trade policy by India, aimed at balancing trade relations while protecting domestic industries. India has been focusing on adding value to its exports, shifting from raw materials to finished goods and high-value products. This strategy not only enhances export earnings but also reduces the potential impact of tariff hikes by ensuring that Indian goods remain competitive in global markets.Additionally, the report added that India is actively working on alternative trade routes that connect Europe, the Middle East, and the U.S., reducing logistical costs and improving efficiency. This restructured supply chain approach is expected to strengthen India's position in international trade despite global uncertainties.Overall, while the U.S. may introduce higher tariffs, India's proactive trade policies, export diversification, and supply chain realignment are expected to mitigate the impact, ensuring steady export growth in the long run.

Shares of Bharat Heavy Electricals Ltd (BHEL), a state-owned engineering company will be in focus on Monday after it announced that it has received an order worth Rs 6,700 crore from Singareni Collieries Company (SCCL) to establish an 800 MW thermal power unit in Telangana.The contract covers BHEL's responsibilities for design, engineering, manufacturing, supply, erection, commissioning, and civil works, according to a company statement. The order pertains to the 800 MW Adilabad supercritical thermal power project in Mancherial district, Telangana, and will be executed on an EPC (Engineering, Procurement & Construction) basis.The total value of the order is Rs 6,700 crore, excluding taxes and duties.The new unit will be built next to the existing 2x600 MW units, which were also entrusted to BHEL for Boiler-Turbine-Generator (BTG) work and commissioned in 2016.BHEL has successfully installed over 75% of the coal-based power sets for various utilities in Telangana.As India’s leading power equipment manufacturer, with over 1,70,000 MW of installed power capacity across the nation, BHEL continues to play a crucial role in strengthening India’s energy security and advancing the country’s goal of self-reliance in the power sector.Shares of the company fell 14.41% and underperformed its sector by 128.11% in the past year. Meanwhile, the scrip offered 250.83% returns in the last three years. According to Trendlyne, the stock has worse 1 year returns than industry, sector, Sensex and Nifty50