The imposition of a steep 50% tariff on Indian exports by the U.S. underscores rising challenges in global trade dynamics that demand immediate response and strategy from India. While accelerating initiatives like export diversification and new FTAs indicates proactive steps from the government, ensuring timely liquidity aid and strengthening domestic consumption may provide short-term relief until longer-term solutions materialize.
The uncertainty around resuming talks for a bilateral trade agreement adds complexity but also offers hope if mutual interests align in future negotiations. India’s ability to pivot effectively-towards diversified markets and stronger self-reliance-could mitigate risks from external dependencies while maintaining it’s economic growth trajectory.
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