25% US Tariff Shock: India Weighs Options, Industry on Edge
New Delhi, July 31, 2025: The Indian government is meticulously evaluating the implications of the recently imposed 25% US tariff on several Indian imports. This follows consultations with key industry stakeholders.
The immediate focus is on mitigating potential damage to vital export sectors. While economists predict a limited overall impact on the Indian economy, specific industries face considerable headwinds.
Competition from nations like Vietnam and Indonesia, already benefiting from favourable trade deals, poses a significant challenge for Indian exporters. This necessitates a strategic response to maintain market share.
Pharmaceutical exports, currently exempted from the tariff, remain a concern. There are apprehensions that this sector could become a target in future US trade policy revisions.
The government’s response will be crucial in safeguarding Indian businesses and ensuring the continued growth of key export-oriented sectors. The long-term implications of this tariff dispute could significantly impact India’s trade relations with the US.