As the world ordershifts, it is time for India to shifts gears too – turning U.S. Tariffs into strategicopportunities for India’s export and manufacturing sectors, writes Panckaj N Umrania.
The recent announcementof higher U.S. tariffs on steel and aluminium imports has sent ripples acrossglobal markets. For many countries, it spells trouble. But, for India, if weact smartly and quickly, it could well be an unexpected doorway to newopportunities.
While thesetariff hikes are primarily aimed at curbing cheap imports from certaincountries, the global supply chain is so interconnected today that the effectsare bound to be felt far and wide. India, with its growing manufacturing baseand global ambitions, stands at a unique crossroads and the choices we make nowwill define our next decade.
The immediate impact and hidden advantages
Yes, increasedtariffs on steel and aluminium imports into the U.S. could slow down directexports from India in the short term. Buyers will be more cautious; Margins mayfeel a squeeze.
But, step backfor a moment. The U.S. will still need steel and allied products. Theirinternal capacity isn't sufficient to meet demand, especially across industrieslike automotive, construction, renewable energy, and defence. If traditionalsupply countries face harsher barriers, Indian manufacturers who meet globalquality standards can become the preferred alternative.
Moreover, asglobal sourcing strategies get reworked, buyers will be looking for trusted,stable partners and India’s reputation as a democratic, reliable, andfast-growing economy works to our favour.
Turning challenges into strategic triumphs: What India can do
India hasmultiple levers at its disposal to turn global shifts into strategic wins,rather than merely absorbing the shock.
Market diversification:
Indiansteelmakers must accelerate efforts to expand into emerging markets like LatinAmerica, Africa, and Central Asia. These regions offer high growth potential withfewer restrictive trade barriers and demand projections are favourable for thelong term.
Focus on value-added segments:
Instead ofcompeting purely on commodity grade steel, Indian players must focus on highmargin, specialised products, such as electrical steel, defence grade alloys,and automotive steel. Customized solutions and processed steels are moreresilient to tariff pressures and command better pricing.
Expand domestic manufacturing capacities:
Thegovernment’s Production Linked Incentive (PLI) schemes across key sectors – automotive,electronics, and renewable energy – offer a timely opportunity. Strategicinvestment in expanding high-end manufacturing capabilities will allow Indianindustries to plug global supply chain gaps swiftly.
Strengthen strategic alliances:
It is criticalto move beyond transactional exports. Indian companies should focus on forginglong term partnerships, joint ventures, and supply agreements with U.S.distributors and OEMs, creating stable revenue pipelines even amidst policyturbulence.
Energy and Steel policy synergy
AligningIndia's energy and steel strategies can lead to stronger resilience. Byincentivising low carbon steel production and integrating renewable energy intomanufacturing, India can meet its climate goals while enhancing itscompetitiveness. A green manufacturing tag will increasingly become a globaldifferentiator.
A New Energy landscape
It is not justabout steel – Energy is equally under the spotlight. Rising global energy costsare reshaping manufacturing competitiveness. India’s push towards renewableenergy – solar, wind, and green hydrogen – offers a powerful lever.
As we movetowards cleaner energy in our production processes, Indian made goods can tapinto the growing global demand for ‘green products’. Manufacturing exportscarrying a low-carbon footprint will be seen as more attractive and futureproof.
The road ahead
Global tradedynamics are evolving rapidly. Tariffs, sanctions, and policy shifts willcontinue to shape the landscape. Instead of reacting to each wave, India’ssteel and manufacturing sectors must focus on building resilience, agility, andstrategic depth.
The answerlies not in fearing the changes but in leading through them. By doubling downon quality, innovation, sustainability and strategic partnerships, Indianexporters cannot just survive this phase but emerge stronger, bigger, andbetter positioned on the global stage.
India’s long-standingstrengths, a robust industrial base, an emerging clean energy movement, a youngskilled workforce, and a reputation for reliability provide a solid foundation.By sharpening our focus on value-added products, expanding capabilities inrenewable energy integration, and adopting a future forward mindset, we canturn global disruptions into stepping stones.
The world isshifting. It's time India shifts gears too, not with fear, but with ambition.
“By doublingdown on quality, innovation, sustainability and strategic partnerships, Indianexporters cannot just survive this phase but emerge stronger, bigger, andbetter positioned on the global stage.”
Panckaj N Umrania,
ExecutiveDirector,
KND Steel.