New Delhi, April 4 -- Several months of suspense culminated this week as US President Trump unveiled plans for reciprocal tariffs. As a result, 180 countries now face tariffs ranging from 10% to 49%.

While India had claimed that US goods attract a weighted average tariff of 7.7% in India, the US calculations have likely included the entire trade deficit to report it at a whopping 52%, thereby attracting reciprocal tariffs at 27%.

While India's trade surplus with the US has expanded from just about $24 billion in 2020 to $46 billion in 2024, it is largely attributable to India's rising exports in general. The US' share in India's exports has remained stagnant at 17-18%. Moreover, India is largely a consumption-driven economy, with export...