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India faces economic impact from U.S. tariff increases
India faces economic challenges as US doubles tariffs, plans measures to mitigate impact on exports and jobs
India faces economic challenges as US doubles tariffs, plans measures to mitigate impact on exports and jobs
– Trump’s 50% tariffs on Indian imports strain U.S.-India relations and threaten India’s economic growth.
– India seeks U.S. tariff reconsideration while exploring trade agreements with other countries to boost exports.
The increased toll on goods such as garments and footwear could threaten thousands of small exporters and jobs, particularly in Prime Minister Narendra Modi’s home state of Gujarat.
India’s current trade agreements with countries like the U.K. and Australia may offer avenues for expanding exports, particularly in textiles.
India’s junior foreign minister, Kirti Vardhan Singh, assured that efforts are underway to protect the economy from the tariff effects, emphasising energy security.
Export Impact
Groups estimate tariffs might impact 55% of India’s merchandise exports to the U.S., disadvantaging Indian exporters against competitors like Vietnam and Bangladesh.
Suggestions include a one-year moratorium on bank loans for affected exporters. Despite challenges, India’s diverse export base and strong domestic demand could cushion the economic blow.
