New Delhi: India has struck a tone of resilience as the United States prepares to impose steep tariffs on Indian exports—doubling existing duties to a maximum of 50 percent starting 27 August.
India braces for significant export shock
India is gearing up for a heavy economic blow following Washington’s decision to levy an additional 25 percent tariff, stacking upon an earlier 25 percent duty. This move could impact 55 percent of India’s $87 billion in annual exports to the U.S., possibly slashing exports by 20–30 percent from September onwards. In the immediate aftermath, the Indian rupee slid and stock markets shed nearly 0.8 percent. The government, meanwhile, plans to offer financial support to exporters and push for market diversification—including China, Latin America and the Middle East. Analysts caution the tariff shock could shave around 0.8 percentage points from India’s annual economic growth.
PM Modi vows to protect small businesses and agriculture
Prime Minister Narendra Modi, speaking at a public event in Ahmedabad, declared India will not yield to economic coercion. “No matter how much pressure comes, we will keep increasing our strength to withstand it,” he affirmed, promising unwavering support to small entrepreneurs, farmers and livestock rearers. He criticised the global trend of economic self-interest, remarking on the prevalence of countries acting solely in their own benefit.
Union Minister Shivraj Singh Chouhan reinforced this stance in response to the U.S. move, underscoring that India will not compromise its farmers’ interests. He noted that subsidies and GM seeds in other countries create an uneven playing field, and India will continue safeguarding its agricultural sector.
Economist and political caution on retaliation
Economist Swaminathan Aiyar recognised the inevitable trade hit, but reassured that India’s economy could withstand it. He noted that while strategic sectors like pharmaceuticals face risks, India’s resilience—especially as a global generic drug supplier—could temper the blow. Yet, he warned the domestic economy has limited absorption capacity in the short term.
Meanwhile, some voices urged a tougher stance. Aiyar called for retaliatory tariffs on U.S. goods if diplomatic channels fail, indicating a push for stronger economic countermeasures.
Strategic diplomacy and broader fallout
India’s Commerce Ministry has yet to officially comment, though officials hinted that exporters will receive support and be encouraged to focus on alternative markets.
This trade escalation, tied to India’s continued imports of Russian oil, marks one of the most serious crises in U.S.–India relations in recent memory