- Title: Trump tariffs a cause for concern for India but no alarm bells yet, say experts
- Date: 6th August 2025
- Summary: NOIDA, UTTAR PRADESH, INDIA (AUGUST 06, 2025) (REUTERS) (SOUNDBITE) (English) SECRETARY-GENERAL, PHD CHAMBER OF COMMERCE AND INDUSTRY, RANJEET MEHTA, SAYING: "Already there was 25 percent tariff. We are concerned about these trade wars. However, Indian economy is very resilient and very robust, and this is an opportunity to diversify to other markets of the world. However,
- Embargoed:
- Keywords: Donald Trump India Russian oil United States experts imports industry leaders tariffs
- Location: NEW DELHI/MANESAR, HARYANA/VISAKHAPATNAM, ANDHRA PRADESH/ GANDHINAGAR, GUJARAT/DARJEELING, WEST BENGAL/DIBRUGARH, ASSAM, NOIDA, UTTAR PRADESH, INDIA/WASHINGTON DC, UNITED STATES
- City: NEW DELHI/MANESAR, HARYANA/VISAKHAPATNAM, ANDHRA PRADESH/ GANDHINAGAR, GUJARAT/DARJEELING, WEST BENGAL/DIBRUGARH, ASSAM, NOIDA, UTTAR PRADESH, INDIA/WASHINGTON DC, UNITED STATES
- Country: Various
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA004ML9L1LB
- Aspect Ratio: 16:9
- Story Text: Indian industry experts and economists on Wednesday (August 6) said U.S. President Donald Trump's additional tariff imposition of 25% on Indian goods provided an opportunity to New Delhi to diversify to other markets of the world.
The new measure raises tariffs on some Indian goods to as high as 50% - among the steepest faced by any U.S. trading partner.
The move is expected to hit key Indian export sectors including textiles, footwear, and gems and jewellery and marks the most serious downturn in U.S.-India relations since Trump returned to office in January.
Not pressing the panic button yet, Chief Economist at Infomerics Ratings, Manoranjan Sharma said India is a largely domestically driven economy, with exports accounting for about 18 percent of its GDP.
"But while there is reason for us and India to be concerned, there is no reason for us to be alarmed. India continues to be a largely domestically driven economy, with exports accounting for about 18 percent of India's GDP. This measure will hit India's GDP by about 20 basis points, exports by about 50 to 60 basis points, and our employment scenario will also be dented to a certain extent," Sharma said.
Secretary-General at Phd Chamber of Commerce and Industry, Ranjeet Mehta said short-term impact would be felt by MSMEs and businesses who were already engaged in trade with the U.S.
A senior Indian official said New Delhi was blindsided by the sudden imposition of the new levy and the steep rate, as both countries continue to discuss trade issues.
Trump's decision follows five rounds of inconclusive trade negotiations, which stalled over U.S. demands for greater access to Indian agriculture and dairy markets.
India's refusal to curb Russian oil purchases - which surged to a record $52 billion last year - ultimately triggered the tariff escalation. - Copyright Holder: REUTERS
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