US tariff threat drives India Inc to explore new markets as cost competitiveness narrows

Indian companies are responding to potential US tariff threats by exploring wider market access, stronger international partnerships, and faster execution strategies. The move reflects efforts to improve competitiveness as India's traditional cost advantage continues to narrow.

According to industry assessments, the cost gap between India and other manufacturing hubs has reduced to 8%, compelling businesses to seek diversification beyond traditional markets. Companies are focusing on strengthening supply chains and accelerating operational timelines to maintain their competitive edge in an evolving global trade environment.