Page 52 - Banking Finance November 2025

ARTICLE

aluminium from other countries, which made those Is There a Silver Lining?
countries angry and they started charging more for US
Even though these taxes are a problem, they might also
goods too.
create some opportunities for India:
2020: The US put even higher taxes on a lot of things 1. Chance to Sell More: If the US charges high taxes on
from China, leading to a big fight called a "trade war." goods from China, India might be able to sell more of
2022-2023: Some of those taxes were changed, but its own goods to the US.
many stayed the same. The US also added new taxes 2. Businesses Move to India: Companies that want to
on important parts for computers and technology. avoid high taxes on Chinese goods might start making

2024: The US said it would start charging more taxes things in India instead.
on countries that charge high taxes on US goods. 3. Better Trade Deals: India might be able to get better
2025 : The US might add even more taxes, which could trade deals with the US, which would help it compete
hurt India's sales to the US and make it harder for com- with other countries.
panies to get the things they need. 4. Boost for Indian Businesses: If things from other coun-
tries become more expensive, it might encourage
What This Means for India: people to buy things made in India, which would help
Indian businesses grow.
India sells a lot of things to the US, so these new taxes can
cause some problems:
1. Slower Growth: Experts think India's economy might How India Can Handle These Changes:
grow a little slower because of these taxes. To deal with these new taxes, India needs to do a few things:
1. Sell to More Countries: India needs to find new cus-
2. Some Industries Hurt: Industries like metals, chemi-
tomers in Europe, Southeast Asia, and Africa.
cals, jewellery, medicine, and cars in India will be hit
the hardest. 2. Make Things Locally: India needs to invest in making
more things at home, so it doesn't have to rely on get-
3. Less Money from Sales: Indian companies might make
ting them from other countries.
less money from selling things to the US.
4. Need to Find New Customers: Because the US is India's 3. Talk to the US: India needs to talk to the US about get-
ting special deals for important products like medicine
biggest customer, India needs to find other countries
and computer services.
to sell to.
4. Use Special Trade Zones: India can use special areas
where companies don't have to pay as many taxes,
which can help them sell their products to other coun-
tries.
5. Find New Ways to Make Things: Indian businesses
should look for new ways to make things, like using 3D
printing and robots, to save money.

Conclusion:
These new trade taxes are a challenge for India, but they
also create some opportunities. By finding new customers,
making more things at home, and working with other coun-
tries, India can turn this problem into a chance to grow
stronger. It will take smart planning and quick action, but
India can handle these changes and build a stronger
economy for the future.

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