New Delhi, April 5 -- India;s exports to the US constitute only 4 per cent of its GDP so the direct impact of the 27 per cent hike in tariffs on Indian goods announced by President Donald Trump will have only a "limited" impact, according to an SBI Research report released on Friday. At the same time, the tariffs levied on India are the lowest among its Asian peers, compared to 34 per cent on China, 36 per cent on Thailand, 32 per cent on Indonesia, and 46 per cent on Vietnam.

This is expected to give India a comparative advantage over these countries and result in an increase in exports in some sectors over the long term, the report stated. "We expect India will have a competitive advantage and export-oriented impact on various sectors,...