India May Attract Global Manufacturers with Low US Tariffs | Logistics Experts

Mumbai, Apr 3 (PTI) India's relatively lower tariff exposure compared to other markets could attract global manufacturers, boosting demand for industrial and warehousing infrastructure even as the reciprocal tariff announced by the Trump Administration will create ripple effects across economies, especially on those with the export-dependent industries, logistics industry experts said on Thursday.

"India's relatively lower tariff exposure compared to other markets could attract global manufacturers, boosting demand for industrial and warehousing infrastructure. However, capitalizing on this shift will require strategic policy measures, stronger supply chain resilience, and a recalibration of export strategies," Anshul Singhal, Co-founder and Managing Director of Welspun One said.

However, capitalizing on this shift will require strategic policy measures, stronger supply chain resilience, and a recalibration of export strategies, he stated.

"US tariffs will create ripple effects across economies, especially on those with export-dependent industries. For India, and particularly the Grade A warehousing sector that is driven largely by domestic consumption, will remain resilient," he added.

However, Singhal said sectors like electronics, textiles, and gems could face disruptions.

He also noted that higher freight costs, longer customs clearance, and stricter compliance may slow trade flows, reducing cargo volumes on the US-bound routes and impacting fleet utilization, which could drive exporters toward short-term warehousing solutions and encourage a shift from air to sea freight to manage rising costs.

According to him, smaller logistics firms with tighter margins may feel the pressure, while demand for integrated logistics and trade advisory services is set to grow.

Stating that India has repeatedly turned economic challenges into opportunities, from the 1991 reforms to post-Pokhran sanctions, Singhal said with the right reforms, trade realignment, and an improved business environment, the country can position itself as a stronger global manufacturing and logistics hub.