India’s bold push for self-reliance is reshaping global trade, but it comes with rising challenges. The latest US tariffs on Indian goods have intensified concerns among exporters and industries alike.
Self-Reliant India Headache For The World?
India wagered on the self-reliance initiative and reinvented global trade patterns. As a result of the US reaction, tariffs on Indian goods have been doubled, and the new US 50 percent Tariff has been in effect since August 27, 2025. One of the effects of this action was to make exporters anxious about their exports, which, among others, may severely affect the sector of the economy in terms of shipment volume, as they wonder.
India Gets 50 Percent US Tariff
The country tried to resist the negative effect of the tariff, but the 50% import duty on all products from India is now in place. These steps, which follow after the imposition of a 25% tariff, will likely cover more than two-thirds of US export goods. This move constitutes a steep escalation in the history of trade wars.
US Tariff Impact and Scope
These new trade restrictions will be applied to about 66% of Indian exports to the US, with the value of goods totaling $85.7 billion in the fiscal year 2025. Predictions say that if the duties stay, shipments could be reduced to $49.6 billion, and this may happen next year.
Sectoral Fallout
The GTRI estimates the value of exports at risk to be $60.2 billion. Industries like textiles, gems and jewellery, seafood, carpets, and furniture may be the ones whose exports will account for up to 70%, laying off millions of workers. Analysts at Moody’s Analytics say that the decline in demand in the US will lead to a slowing of wage increases and the investment rate.
India’s Response – Standing Firm
Prime Minister Narendra Modi, at the time when he addressed the gathering in Ahmedabad, said that India will absolutely not give in to the pressure and will stand with the farmers and small industries. He called for the promotion of the swadeshi goods as the most suitable approach to the implementation of the country’s self-reliance policy. India also still gets its oil from Russia, and the officials there say that it is a must-have for the 1.4 billion citizens to have energy that is not only affordable but also of good quality.
