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Corporates hopeful that India, US would reach negotiated settlement on tariffs: Report

IANS by IANS
August 13, 2025
in Business
Corporates hopeful that India, US would reach negotiated settlement on tariffs: Report
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New Delhi, Aug 13 Corporates in India are hopeful that India and the US would find a way to a negotiated settlement in tariffs, a report said on Wednesday.

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The managements that is affected by the US administration’s decision expect the final tariff outcome for US imports from India to settle at a lower rate, key industry leaders said at an event hosted by Emkay, a Financial Services provider.

According to corporate stakeholders, the 21-day off-ramp window should yield a negotiated settlement between India and the US, as for companies most exposed to the US market, contingency plans that include relocating production to other geographies, though such moves would require time to execute.

The speakers reinforced the long-term India growth story.

Dixon Technologies outlined ambitions to climb the value chain and sustain growth momentum.

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Adil Zainulbhai, Chairman of the Capacity Building Commission, offered insights into how the CBC’s initiatives are boosting efficiency in government and public sector undertakings.

However, they acknowledged the potential strain on asset quality — especially for textile and MSME exporters — if tariffs were to remain at 50 per cent.

The leaders expect the government to step in with targeted measures, including a possible credit guarantee scheme, to cushion the impact, as per the speakers.

Beyond trade issues, sentiment for India’s domestic market remained positive, they emphasised.

Management teams across sectors, from consumer staples to discretionary categories, reported early signs of demand recovery and are gearing up for a strong festive season and a healthy second half of FY26, according to the report.

Lenders backed this outlook, forecasting robust loan growth in retail segments later in FY26, even as corporate lending faces ongoing competition from the bond market, the speakers highlighted.

Meanwhile, the government is still involved in the discussions on the India-US Bilateral Trade Agreement (BTA) with Washington with the aim to expand trade and investment through tariff stability and long-term trade predictability.

(Auto generated news from IANS Feed. This has not been edited by enewstime desk)

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