India much better placed to deal with trump tariffs itc chairman sanjiv puri

India much better placed to deal with trump tariffs itc chairman sanjiv puri

India is much better placed to deal with disruptions emanating from Trump tariffs as there is a possibility of signing an FTA with the US for which discussions are happening at fast pace, ITC Chairman Sanjiv Puri said. US President Donald Trump imposed reciprocal tariffs on many countries, including India, which he later postponed by three months with the exception of China on whom a 145 per cent tariff has been slapped. However, a 10 per cent additional duty on exports to the US will continue. The reciprocal tariffs have been suspended until July 9.

When asked about the impact of such tariffs on the domestic industry, Puri said it will be difficult to say how it will evolve, but India will be much better placed in this.

‘It's difficult to say how it will evolve, but my own sense is that at the end of it, I think India is going to be much better placed, because we do see the possibility of several FTAs being inked, which industry has been looking forward to for some time, hopefully during the year, whether it's the EU, UK, and, of course, the US, where there is, I think discussions, dialogue happening at a faster rate,’ he said.

India and the US have been engaged in negotiating a bilateral trade agreement (BTA) since March. Both sides have targeted to conclude the first phase of the pact by fall (September-October) of this year with an aim to more than double the bilateral trade to $500 billion by 2030.

Puri noted that though India's consumption-driven economy may face some short-term uncertainties, its levers of competitiveness, digitisation and future-ready portfolio has much to offer.

‘So while short-term uncertainty, unpredictability may be causing some kind of impact on global growth also...a consequent little impact on India will be also there,’ he said while speaking in a fireside chat - Resilience and Growth in the New World Disorder at AIMA summit.

On ITC, Puri said it is also a ‘more domestic-focused industry’ and may face some impact due to the US tariffs.

He emphasised the need for agility and empowered teams to navigate rapid changes in the tariff structure.

ITC's strategy to deal with uncertainties includes diversifying its portfolio, investing in sustainable packaging, and leveraging digitalization and innovation. The company emphasizes supply-side resilience, climate-proofing infrastructure, and agile, empowered teams.

ITC's human capital development focuses on integrated rural development hubs and vocational training. Sustainability is integrated into corporate strategy with initiatives like Climate Smart Agriculture and green infrastructure.

The company aims to balance economic, social, and environmental goals, he said.

Puri also highlighted how the quick commerce revolution is challenging traditional FMCG players, necessitating new skills and modes of operation.