TNI Bureau: Trump tariffs impact on Indian industry as the United States has raised import duties on Indian goods to as much as 50 per cent. The higher tariffs are expected to hit labour-intensive sectors such as textiles, gems, jewellery, and mechanical appliances, while key industries like pharmaceuticals, semiconductors, electronics, and IT remain exempt for now. Exporters fear nearly 55 per cent of India’s $87 billion exports to the US could be affected, with job losses and reduced wages likely in affected sectors.
India’s GDP grew 7.8 per cent in April-June, but economists warn growth could slow by 0.6 to 1 percentage point if tariffs remain. The government has proposed GST rate cuts and tax relief to boost domestic demand, while also seeking to diversify export markets. Rating agencies have downgraded outlooks for textiles and diamonds, citing weaker cash flows and stress on small firms. Economists say prolonged tariffs may hurt investment, though India’s strong rural demand and policy support could soften the blow.
