Commenting on the issue, think tank GTRI said that even though US tariffs on Indian goods remain at 10 per cent, well below the 30 per cent still imposed on Chinese imports, the massive tariff gap that once favoured India is shrinking fast.

“Just months ago, the US imposed duties of up to 145 per cent on Chinese goods, giving India a major edge in attracting companies looking to relocate. Now, that edge has narrowed dramatically, with the US and China easing tensions and bringing tariffs closer to parity,” GTRI Founder Ajay Srivastava said.