New Delhi: India is now under the direct impact of the 50 percent tariffs of US President Donald Trump from August 27, 2025. The latest 25 percent of tariffs were imposed by President Trump on the grounds of India buying discounted Russian oil. The sectors that are set to be impacted the most are textiles, leather, and gems and jewellery.
However, industry chambers opined that India’s economy is resilient and equipped with strong macroeconomic fundamentals because of the next-gen reforms. They called for the trade diversification, promotion of MSMEs and their exports, making global economic alliances, and help building Brand India in order to facilitate market access of Indian products and services to several other international markets post the tariff implementation.
They further said that product and market diversification while simultaneously strengthening the domestic competitiveness of the key Indian export products, such as those of textiles, gems and jewellery, agriculture, and shrimp, are essential to withstand the effect of Trump tariffs.
Indian economy can withstand US tariff impact
“Indian economy continues to demonstrate resilience and strength amid global headwinds, underpinned by a large and vibrant consumer base, robust macroeconomic fundamentals, continued economic reforms and enterprising businesses. The proposed next-generation GST reforms announced by Hon’ble Prime Minister will give a further boost to India’s growth.” Harsha Vardhan Agarwal, president of FICCI, was quoted by ANI as saying.
Sanjay Nayar, who is the president of ASSOCHAM, said the tariffs are now a reality, but we are better equipped to deal with the resilience. “Exporters across textiles, gems & jewellery, agriculture, and shrimp face steep duties, yet they are accelerating diversification into Africa, Latin America, Europe, and ASEAN, while strengthening competitiveness at home. With strong government support, this disruption will not weaken India’s trade ambitions, it will only strengthen India’s resolve toward resilience, self-reliance and global leadership,” Nayar was quoted by ANI.
Additionally, some industry experts see the American tariffs as an opportunity for India to become a trusted and economic partner for the global world. Manish Singhal, Secretary General of ASSOCHAM, is also among those who see the tariffs as an opportunity. “The US tariff regime is not just a challenge but an opportunity for India to strengthen its role as a resilient and future-ready trading partner. By deepening partnerships with developed economies, diversifying markets, and advancing bold reforms, we are building a competitive and trusted economic ecosystem,” ANI quoted him.