side-winder
Moderator
Seems old friendship with Mr. Doolaan Trump is warming up again after a sour spell.
India - US Tariff and Relations | News + Updates
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Yasser76
Elite Member
In charts: What Donald Trump’s tariffs mean for India’s economy
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Labour-intensive industries such as textiles and jewellery projected to be worst hit by US levies© FT montage/Getty ImagesIn charts: What Donald Trump’s tariffs mean for India’s economy on x (opens in a new window)In charts: What Donald Trump’s tariffs mean for India’s economy on facebook (opens in a new window)In charts: What Donald Trump’s tariffs mean for India’s economy on linkedin (opens in a new window)ShareSavecurrent progress 0%Andres Schipani in New Delhi, Chris Kay in Mumbai and Haohsiang Ko in Hong KongPublished7 HOURS AGO14Print this pageDonald Trump has hailed India’s Prime Minister Narendra Modi for doing a “tremendous job”, adding to hopes of conciliation as the two sides held a fresh round of trade talks.Modi responded on social media that he was “fully committed to taking the India-US Comprehensive and Global Partnership to new heights” as the countries resumed face-to-face negotiations in New Delhi on Tuesday.The incentive for better relations is clear — India is one of the countries hardest hit by the US president’s trade war, with 50 per cent tariffs that came into effect in recent weeks almost double those on south-east Asia and rivalling the measures on China. Trump, who has said the tariffs were in response to India’s trade in Russian oil, has downplayed the row, saying “we just have moments on occasion”.But the impact of Trump’s tariffs is being felt across India, threatening jobs, GDP growth and years of diplomacy.GDP growth may slipIndia is the world’s fastest-growing large economy, with the latest official data showing GDP expanding 7.8 per cent in the quarter to June from a year earlier.Modi had set a target of achieving developed country status by 2047, the centenary of India’s independence from Britain, a target that would require average GDP growth of 7.8 per cent annually over the next two decades.But Trump’s trade war could weigh on growth, which before the introduction of the tariffs the Reserve Bank of India had forecast at 6.5 per cent for the 2025-26 fiscal year. “Things are about to get tougher for the economy,” said Shilan Shah, emerging markets economist at Capital Economics, which estimated that Trump’s tariffs could knock as much as 0.8 percentage points off India’s GDP growth this year.Modi’s chief economic adviser V Anantha Nageswaran has put that figure at 0.3 to 0.5 percentage points in the event the tariffs were “shortlived”. If they “continue into the next financial year and last, that would be a huge challenge”, he added.Indian export blowThe US is India’s largest export market. Indian businesses sold $87bn worth of goods into the US in the financial year that ended in March, accounting for nearly 20 per cent of overall exports of $438bn, according to official data.India’s exports to the US declined by 14 per cent month-on-month in August, according to trade ministry data released this week.However, India is far less exposed to tariff turmoil than its more trade-dependent Asian peers, thanks to an enormous domestic market. Modi has hailed the importance of Atmanirbhar Bharat, or “self-reliant India”, and exhorted businesses to “refrain from selling items sourced from other countries”.The sizeable domestic market “is certainly a huge relief”, said Abhijit Das, an Indian trade policy expert. “The adverse impact of these 50 per cent tariffs would have magnified manyfold had we been more export-oriented.” However, he warned that “the domestic market cannot fully compensate for the export losses to the US market”. HSBC economists Pranjul Bhandari and Aayushi Chaudhary pointed to efforts under way to fast-track trade deals with other nations, ease foreign investment rules and mend relations with China.Modi has also recently simplified India’s complex goods and service taxes, which economists argue could lift GDP.The threat to jobsSome of the worst-affected industries are also some of India’s biggest employers.Analysts and trade bodies warn that labour-intensive sectors such as textiles, gems, jewellery, shrimp and carpets will be hit hardest by Trump’s tariffs, with some braced for a collapse in exports of up to 70 per cent in the 2025-26 fiscal year.The most directly affected industries employ an estimated 21mn people, as well as many more informal workers, according to analysts at Nomura, who warned that small- and medium-size businesses would struggle to weather the impact of the tariffs.“A challenging external environment may impact broader business confidence, which could lead to continued weakness in private capex,” they said. For India’s gems and jewellery companies, the tariffs threaten business in one of their most important markets. The US accounts for more than $10bn of Indian gem exports, or 30 per cent of its total global trade.Kirit Bhansali, chair of the Gem and Jewellery Export Promotion Council, said the tariffs “would have far-reaching repercussions across India’s economy — disrupting critical supply chains, stalling exports, and threatening thousands of livelihoods”. For gems and jewellery in particular, he added, “tariff of this magnitude [are] severely devastating”. Indian industry groups, corporate executives and tycoons have called on New Delhi for support. Many experts expect Modi’s government will come to small exporters’ aid with a stimulus package and assistance finding new export markets.The sectors that have escaped tariffsSome of India’s most important export industries, including consumer electronics and pharmaceuticals, have escaped tariffs for now.But sector-specific US trade reviews could result in additional levies. It is unclear when these will be announced.India has become a critical country in the Apple assembly network as some production has shifted away from China.For Modi’s government, Apple is a core part of its pitch to lure manufacturing investment and create factory jobs. But Apple’s plans to move assembly of all US-sold iPhones to India by 2026 prompted an outburst from Trump this year.Medicines produced in India also account for almost half of US generic drug supplies, according to the Indian Pharmaceutical Alliance. “Generic medicines are important for affordable healthcare in the US and typically operate on razor-thin margins,” said Sudarshan Jain, IPA secretary-general. “Ensuring their consistent availability is critical for patient care.”
In charts: What Donald Trump’s tariffs mean for India’s economy
Labour-intensive industries such as textiles and jewellery projected to be worst hit by US levies
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SABRE
Registered Member
Probably because India is planning to buy some military equipment worth billions from the US.
onlinpunit
Trusted Member
He is "made in lahore" american ! Balkanization of india is essential for him.
onlinpunit
Trusted Member
At its worst we have to endure Trump for only 3 more years.
FarhanSiddiqui
Registered Member
They pay $1 a day to workers in the poor countries while they have to pay at least $10 an hour or $80 a day in the US. Prices will soon jump in the US as the local products with higher price tags find their way to the shelves of grocery/department stores. Inflation will cause slowdown in the economy as consumers cut back due to the higher prices.
Muji.Iqbal
Trusted Member
Well if India wants to stop the tariffs then it should stop buying Russian oil. lol.
India buying Russian oil funds the Russian war machine in Ukraine.
India buying Russian oil funds the Russian war machine in Ukraine.
Mighty_Dragon_Strike
Trusted Member
China will eventually ensure, USA does not fully collapse!
it goes in their interest, my limited reading only
it goes in their interest, my limited reading only
FarhanSiddiqui
Registered Member
Indian buying Russian gas is an excuse Trump want high tariffs on the Indian exports to US.
Maarkhoor
Snake Eater
Zaat di kord kerli tey shehti-raon nou japhay,
Vikramaditya1
Trusted Member
Meanwhile
India’s Exports Grow 9.34% in August
India’s Exports Grow 9.34% in August
NGAD IS THE BEST
Elite Member
And for unhealthy products by you Europe banned 400 unhealthy Indian products recently
the US 50% tariff on India started on 08/27/2025
nope, it's because Saudi is losing its share of energy exports to China and India. The Arabs don't want to cut prices to match Russia's aggressive discounts. Indian exports of refined Russian petroleum is dramatically impacting Saudi and other OPEC nations revenue.
