The proposed tariffs by US President-elect Donald Trump on several nations present a unique opportunity for India, according to NITI Aayog. While these tariffs, if enacted, are expected to cause a short-term shock to global trade, they could allow India to expand its role in global supply chains.

During his presidential campaign, Trump criticized India as "the biggest charger of tariffs" and vowed to retaliate if re-elected. However, in recent statements, Trump announced plans to impose tariffs on China, Mexico, and Canada starting from day one of his presidency, which begins on January 20, 2025. Notably, he did not include India in these tariff plans. In addition, Trump warned that he would impose 100% tariffs on exports from BRICS nations, including India, if these countries attempt to replace the US dollar as the primary trading currency.

Despite the potential for disruption in the global trade system, NITI Aayog's Chief Executive Officer, B.V.R. Subrahmanyam, sees this as a chance for India. "There’s going to be huge disruption because of tariffs, it's US trade, but there are going to be huge opportunities," Subrahmanyam remarked. He likened the situation to a cricket match, noting that India is in the right position to capitalize on the changing dynamics of global trade. "We are at first slip, the ball is coming in our direction, and the question is, can we actually prepare for ourselves?" he added.

The potential trade diversion resulting from US tariffs could lead to a "massive boom" for India. As countries adjust their trading relationships in response to tariffs, India could see a surge in demand for its products and services, especially as businesses seek alternatives to suppliers in the US tariff-hit nations. If India strategically positions itself, it could strengthen its presence in global markets, benefiting from shifting trade patterns.

In conclusion, while the proposed US tariffs may initially disrupt global trade, they also present India with a significant opportunity to grow its share in international supply chains. By preparing for the changes ahead, India could capitalize on the shifting dynamics of global commerce in the post-tariff world.