<p>New Delhi: United States President <a href="https://www.deccanherald.com/tags/donald-trump">Donald Trump</a>'s aggressive tariff policies are likely to hit America’s economic growth, especially consumption and exports, but India would gain from these trade uncertainties, SBI Research said on Monday.</p>.<p>"Long trends indicate possible downturn in US economy GDP growth along with slowdown in US exports and consumption. The overall US value add is showing a declining trend with shrinking TFP (total factor productivity) growth," SBI Research said in a report.</p>.India sees positive outcome from US trade talks as tariffs loom.<p>As per the report authored by State Bank of India (SBI) Group Chief Economic Adviser Soumya Kanti Ghosh, the US reciprocal tariffs may not impact India much.</p>.<p>“We estimated the decline in exports in the range of 3-3.5% which again should be negated through higher export goals across both manufacturing and services fronts, as India has diversified its exports kitty, pitched value addition, exploring alternate areas and works on new routes that transcend from Europe to USA via the Middle East, redrawing new supply chain algorithms,” Ghosh, who is also member of the Sixteenth Finance Commission, said in the report.</p>.<p>He underlined that India has been negotiating free trade agreements with several partners – both bilateral and regional – in a bid to boost export-oriented domestic manufacturing.</p>.<p>India signed 13 free trade agreements in the last five years with major trading and investment partners including the United Arab Emirates, Australia and Mauritius. FTA negotiations are underway with several countries and regions including the United Kingdom and the European Union.</p>.<p>These FTAs cover a wide array of topics, such as tariff reduction impacting the entire manufacturing and the agricultural sectors; rules on services trade; digital issues such as data localisation; intellectual property rights that may have an impact on the accessibility of pharmaceutical drugs; and investment promotion, facilitation, and protection.</p>.<p>FTA with the UK alone is expected to increase bilateral trade by $15 billion by 2030. Future FTAs will likely focus on enhancing digital trade, the report noted.</p>.<p>On the impact of Trump's policies on the US economy, SBI Research report noted that the "current tariff policy will have short-term pain and US GDP will not see acceleration in material way."</p>
<p>New Delhi: United States President <a href="https://www.deccanherald.com/tags/donald-trump">Donald Trump</a>'s aggressive tariff policies are likely to hit America’s economic growth, especially consumption and exports, but India would gain from these trade uncertainties, SBI Research said on Monday.</p>.<p>"Long trends indicate possible downturn in US economy GDP growth along with slowdown in US exports and consumption. The overall US value add is showing a declining trend with shrinking TFP (total factor productivity) growth," SBI Research said in a report.</p>.India sees positive outcome from US trade talks as tariffs loom.<p>As per the report authored by State Bank of India (SBI) Group Chief Economic Adviser Soumya Kanti Ghosh, the US reciprocal tariffs may not impact India much.</p>.<p>“We estimated the decline in exports in the range of 3-3.5% which again should be negated through higher export goals across both manufacturing and services fronts, as India has diversified its exports kitty, pitched value addition, exploring alternate areas and works on new routes that transcend from Europe to USA via the Middle East, redrawing new supply chain algorithms,” Ghosh, who is also member of the Sixteenth Finance Commission, said in the report.</p>.<p>He underlined that India has been negotiating free trade agreements with several partners – both bilateral and regional – in a bid to boost export-oriented domestic manufacturing.</p>.<p>India signed 13 free trade agreements in the last five years with major trading and investment partners including the United Arab Emirates, Australia and Mauritius. FTA negotiations are underway with several countries and regions including the United Kingdom and the European Union.</p>.<p>These FTAs cover a wide array of topics, such as tariff reduction impacting the entire manufacturing and the agricultural sectors; rules on services trade; digital issues such as data localisation; intellectual property rights that may have an impact on the accessibility of pharmaceutical drugs; and investment promotion, facilitation, and protection.</p>.<p>FTA with the UK alone is expected to increase bilateral trade by $15 billion by 2030. Future FTAs will likely focus on enhancing digital trade, the report noted.</p>.<p>On the impact of Trump's policies on the US economy, SBI Research report noted that the "current tariff policy will have short-term pain and US GDP will not see acceleration in material way."</p>