What happened?

The Trump administration has imposed a 27% tariff on imports from India as part of its new reciprocal trade policy, affecting key sectors such as diamonds, smartphones, solar PV modules, and apparel. While exemptions apply to certain energy products and pharmaceuticals, India’s top pharma exports to the US remain outside the exemption list. Apparel exports, however, may benefit due to higher tariffs imposed on competitors like Vietnam (46%) and Bangladesh (37%). The tariff hike on Vietnam could also help India gain an edge in smartphone and solar module exports. Meanwhile, Indian exports of auto components, steel, and aluminum to the US are expected to face challenges due to previously announced tariffs. Trade experts emphasize the need for a Bilateral Trade Agreement (BTA) with the US to ensure stable market access and predictable tariffs.

Why it matters to India

The tariff shift presents a mixed scenario for India’s export sectors. While challenges arise for traditional strongholds like diamond and steel, the relatively lower tariff rates on Indian apparel and electronics compared to competing nations provide a strategic advantage. This could accelerate India’s positioning in global supply chains, especially in electronics and high-value manufacturing. However, sustaining these gains would require diplomatic efforts to negotiate a BTA and strategic policy shifts to reinforce India’s export resilience. The developments also highlight the evolving nature of US-India trade relations, underscoring the importance of long-term economic diplomacy.

What happened?

India and Chile held a Mining Industry Round Table on 1 April, focusing on strengthening bilateral cooperation in critical minerals, including copper and lithium. Minister of Coal & Mines G. Kishan Reddy led the Indian delegation, which included senior officials and representatives from leading mining and metal companies. Chile’s Minister of Mines Aurora Williams led the Chilean delegation, emphasizing her country’s expertise in copper and lithium production.

The discussions covered potential joint ventures, investment opportunities, and technological collaboration in sustainable mining practices. Both sides also explored avenues for renewing the India-Chile Memorandum of Understanding (MoU) on Geology and Mineral Resources to create a long-term framework for cooperation.

Why it matters to India

India’s growing demand for critical minerals, driven by its expanding electric vehicle (EV) industry, renewable energy projects, and electronics manufacturing, makes Chile a key partner in securing a steady supply of these essential resources. Strengthening ties with Chile, one of the world’s largest producers of lithium and copper, will enhance India’s resource security and reduce dependency on other suppliers.

The collaboration is expected to facilitate greater trade in minerals, promote investment in value-added mineral processing, and boost India’s efforts in sustainable and responsible mining practices. With India looking to diversify its critical mineral imports, this engagement with Chile aligns with its broader strategy to secure raw materials essential for its economic growth and clean energy transition.

What happened?

External Affairs Minister S. Jaishankar addressed the 20th BIMSTEC Ministerial Meeting in Bangkok, reaffirming India’s commitment to regional cooperation. He highlighted BIMSTEC’s role in strengthening connectivity, trade, and security in the Bay of Bengal region, stressing the need for an ambitious approach amid global uncertainties. India underscored its efforts in enhancing infrastructure links, including the Trilateral Highway, and emphasized the importance of deepening cooperation in energy, digital infrastructure, maritime security, and counterterrorism. He also reaffirmed India’s support for disaster response and food and energy security in the region. The meeting set the stage for the upcoming BIMSTEC Summit.

Why it matters to India

As a leading member of BIMSTEC, India sees the grouping as crucial for regional integration and economic growth, aligning with its Act East policy and Neighbourhood First approach. Strengthening connectivity and security cooperation enhances India’s strategic and economic influence in the Bay of Bengal, facilitating trade and people-to-people exchanges. The focus on counterterrorism, cyber security, and disaster response reinforces India’s role as a key player in shaping the region’s stability. The ministerial meeting sets the groundwork for concrete outcomes at the BIMSTEC Summit, advancing India’s broader regional aspirations.

What happened?

The 7th India-Japan Maritime Affairs Dialogue was held in Tokyo, where officials from both countries discussed strengthening maritime cooperation. The Indian delegation was led by Joint Secretary Muanpuii Saiawi from the Ministry of External Affairs, while Japan’s delegation was headed by Deputy Director-General Kashiwabara Yutaka. The discussions focused on enhancing maritime security, countering illicit maritime activities, and improving domain awareness. Both sides also reviewed ongoing cooperation and explored ways to strengthen regional and international maritime security mechanisms. The next round of the dialogue will be held on a mutually agreed date.

Why it matters to India

Maritime collaboration with Japan reinforces India’s strategic interests in the Indo-Pacific, particularly in ensuring a secure and rules-based maritime environment. Strengthening cooperation in areas such as maritime domain awareness and capability building enhances India’s security preparedness, particularly in countering emerging threats in the region. The dialogue aligns with India’s broader efforts to deepen partnerships with like-minded nations to uphold stability and economic prosperity in the Indo-Pacific.