India may not be greatly impacted by reciprocal tariffs, according to SBI Research.

The proposed reciprocal tariffs by US President Donald Trump might only result in a 3-3.5 percent drop in exports, with increased exports offsetting the impact.

Increased export targets in the manufacturing and service sectors as a result of India's efforts to diversify its export base, pitch value addition, investigate new markets, and develop new pathways that connect Europe and the United States through the Middle East while also reworking supply chain algorithms.

Additionally, India will benefit from the steel and aluminum tariffs that the United States imposed last week.

With $13 million in aluminum products and $406 million in steel products, India has a small trade deficit with the US. India ranks among the top 10 importers of aluminum but not among the top 10 importers of steel products, making up only 1% of imports going to the US. However, from 2018 and 2024, its share decreased from 3 to 2.8 percent.