US tariff threat pushes India Inc to new markets as cost gap narrows to 8%: Mukundan
A potential U.S. 100% tariff on Indian imports of Russian oil is prompting Indian firms to diversify into new markets, while infrastructure upgrades have cut India’s cost disadvantage from roughly 12% to about 8%. Industry leader Mukundan says companies are under‑utilising existing free‑trade agreements and are seeking partnerships across the Gulf, Israel, Peru, Mexico, Chile and battery‑resource hubs such as Australia, Chile and Argentina.
- ✓A potential U.S.
- ✓threat of up to 100% tariffs on India’s purchases of Russian oil is intensifying the push for market diversification among Indian corporations.
- ✓100% tariff on Indian imports of Russian oil is prompting Indian firms to diversify into new markets, while infrastructure upgrades have cut India’s cost disadvantage from roughly 12% to about 8%.
The Confederation of Indian Industry (CII) chief Mukundan warned that a fresh U.S. threat of up to 100% tariffs on India’s purchases of Russian oil is intensifying the push for market diversification among Indian corporations. He highlighted that improvements in power supply, logistics and rail freight have narrowed the overall cost gap with global competitors to roughly 8%, down from an earlier 12% disadvantage.
Mukundan noted that Indian exporters are currently leveraging only 30‑40% of the tariff lines available under existing free‑trade agreements, leaving significant room for growth. Ongoing trade negotiations with the Gulf Cooperation Council, Israel and Peru, together with deeper engagement with Mexico and Chile, are part of the strategy. He also referenced the Agratas battery project—led by Tata Group companies—to illustrate the need for upstream resource partnerships in Australia, Chile and Argentina, as India scales its domestic battery manufacturing.
The remarks come against a backdrop of previous tariff‑related disruptions that forced firms to seek alternative destinations. Mukundan stressed that signing trade pacts is only the first step; translating them into concrete business opportunities requires faster execution, multimodal logistics, and stronger buyer‑seller linkages. He called for a shift from focusing solely on ease and cost of doing business to improving the speed of transactions, citing rail freight expansion and multimodal transport as key levers to lower costs and emissions.
- •Aspirants and citizens are advised to monitor official notices and circulars issued by The Hindu BusinessLine Economy.
- •Verify all prescribed eligibility criteria, cutoff dates, and authenticated document requirements prior to formal submissions.
- •Track connected examination timetables, vacancy advisories, and administrative gazettes on SuchnaSetu.
| Issuing Authority | The Hindu BusinessLine Economy |
|---|---|
| Topic Category | BUSINESS |
| Jurisdiction | All India / National |
| Publication Date | 16 September 2026 |