Amid escalating U.S. tariffs on Indian exports, prominent FMCG players—including Amul and ITC—are recalibrating their U.S. strategy. Both are evaluating the feasibility of establishing production facilities in third countries or directly in the U.S. to overcome tariff-related hurdles and shield export competitiveness. This move seeks to mitigate the impact of elevated duties and preserve market access in a shifting trade landscape.
From a trade standpoint, this marks a strategic pivot from traditional export models toward localization, enabling Indian dairy exporters to sustain price efficiencies and consumer loyalty despite protectionist pressures.
Industry Insight:
For dairy exporters like Amul, investing in localized production—or third-country hubs—can be a smart defensive strategy. It preserves margins and competitive positioning in the U.S., while future-proofing supply chains against volatile tariff regimes.