Introduction: Why Upalapadu Pratakota Shiva Prasad Reddy Calls This the “18% Moment”
Upalapadu Pratakota Shiva Prasad Reddy, Chairman of the Premidis Group, believes Indian exporters are standing at a rare inflection point.
The India–US Trade Deal has officially taken effect. As a result, tariffs on several Indian export categories have dropped sharply to 18%. For many business owners, this may sound like just another trade update. However, for those who understand margins, scale, and global competition, this change is transformative.
“For years, Indian exporters competed with Vietnam and Bangladesh on razor-thin margins,” explains Upalapadu Pratakota Shiva Prasad Reddy. “Now, that equation has shifted. An 18% tariff changes pricing power, contract viability, and long-term supplier relationships.”
Simply put, this is the best way to export right now—but only if executed correctly.
The China Plus One Strategy Is Back—Stronger Than Before
Finance Minister Nirmala Sitharaman has called the trade agreement “good news for Made in India.” Yet according to Upalapadu Pratakota Shiva Prasad Reddy, the deeper impact lies in what global buyers are now willing to commit.
For nearly two years, the China Plus One strategy stalled. While companies wanted diversification, tariff uncertainty and regulatory risk slowed real movement.
That hesitation is now gone.
“The US has sent a clear signal,” says Upalapadu Pratakota Shiva Prasad Reddy. “India is no longer the alternative. India is the preferred partner.”
As a result, global procurement teams are actively re-evaluating supplier bases. This shift opens the door for Indian manufacturers—especially those in Andhra Pradesh, Telangana, and Tamil Nadu—to lock in multi-year contracts.
At Premidis Group, this has already triggered expansion planning across export-oriented industrial clusters, particularly in textiles, electronics, and precision components.
Best Way To Export Now: 3 Execution Strategies That Matter
Tariff advantages alone do not guarantee success. According to Upalapadu Pratakota Shiva Prasad Reddy, exporters must act decisively and correctly. The opportunity window is real—but temporary.
Below are the three execution strategies he considers essential.
1. Audit Your HS Codes Immediately
The tariff reduction is not universal. It applies only to specific product classifications under the Harmonized System (HS) Codes.
“This is where most exporters fail,” warns Upalapadu Pratakota Shiva Prasad Reddy. “They assume coverage instead of verifying it.”
The best way to export now starts with precision. Exporters must:
- Review their exact HS codes
- Confirm eligibility under the 18% bracket
- Re-price export quotations immediately
“Use the margin advantage to win contracts first,” he advises. “Once you secure the buyer, you can rebuild margins through efficiency and scale.”
Speed matters. Buyers are re-negotiating contracts now—not six months later.
2. Clean Your Supply Chain for ‘Friendshoring’ Compliance
The US is no longer just importing goods. It is importing trust.
This shift, known as Friendshoring, means American companies want suppliers whose entire value chain aligns with geopolitical allies.
“If you assemble in India but source critical inputs from China, you are exposed,” explains Upalapadu Pratakota Shiva Prasad Reddy.
The best way to export sustainably is to:
- Conduct a full supply-chain audit
- Reduce dependency on sanctioned or rival economies
- Source raw materials domestically where possible
American buyers increasingly ask for transparency reports. A clean supply chain is no longer optional—it is a competitive advantage.
3. Build Scale Before the Order Comes
Indian exporters often face a painful problem. They win the contract—but lose the follow-through.
“US buyers don’t order in hundreds,” says Upalapadu Pratakota Shiva Prasad Reddy. “They order in millions.”
To succeed, exporters must prepare for volume:
- Upgrade machinery
- Automate production lines
- Secure working capital early
The 18% tariff advantage loses value if you cannot deliver at scale. Therefore, Premidis Group is actively helping partner units become scale-ready, not just export-ready.
Why Andhra Pradesh Is Uniquely Positioned
According to Upalapadu Pratakota Shiva Prasad Reddy, Andhra Pradesh has a structural advantage in this cycle.
The state offers:
- Port access
- Industrial corridors
- Improving logistics infrastructure
- Competitive labor availability
“These are not abstract benefits,” he notes. “They directly impact lead times, freight costs, and buyer confidence.”
As a result, exporters who move now can lock in geographic advantages before land and labor costs rise.
Conclusion: Execution Decides Everything
The paperwork is done. Tariffs are reduced. Markets are watching.
However, as Upalapadu Pratakota Shiva Prasad Reddy emphasizes, policy only creates opportunity. Execution creates wealth.
“The best way to export now is not waiting,” he concludes. “It is acting while others are still analyzing.”
The 18% window will not stay open forever. Those who move decisively will define the next decade of Indian exports.
For deeper policy insight, you can also read our Economic Survey 2026 analysis to understand how national strategy supports this export push.
About the Author
Upalapadu Pratakota Shiva Prasad Reddy is the Chairman of Premidis Group, bridging global trade policy with local industrial execution.
