New Delhi: India has sought to calm fears over Washington’s decision to impose steep new tariffs on its exports, stressing that the impact will be manageable and the move represents only a passing phase in the broader India–US partnership. The reassurance came after U.S. President Donald Trump ordered a 50 percent duty on several Indian products, effectively doubling existing rates, in what analysts see as part of his pressure campaign against New Delhi for continuing to purchase Russian oil.
Government sources emphasized that exporters should not panic, pointing out that India’s outbound trade is diversified enough to absorb the shock. “The impact is unlikely to be as severe as feared,” one source told PTI, adding that the decision must be seen in the context of a long-term relationship with Washington rather than a breakdown of ties.
The move, however, represents one of the harshest tariff levels among America’s trading partners since Trump’s return to the White House in January. While duties have been imposed on both allies and rivals, this latest round is seen as particularly tough. U.S. Treasury Secretary Scott Bessent, however, attempted to strike a conciliatory note, telling Fox Business that Trump maintains “good ties” with Prime Minister Narendra Modi and expressing confidence that “at the end of the day, we will come together.”
Exporters on the ground, especially smaller firms, are bracing for disruption. Ajay Sahai, director general of the Federation of Indian Export Organisations, urged the government to provide liquidity support so that businesses can keep workers on their payrolls even if orders are hit. “We are still optimistic that trade negotiations will ease the strain,” Sahai noted.
India has strongly criticised the new levies as “unfair, unjustified and unreasonable.” Economists, meanwhile, argue that the challenge could serve as a turning point. They suggest that the country should accelerate its “Make in India 2.0” programme, strengthen domestic supply chains, and push into new export markets to reduce overdependence on any single destination.
Despite the turbulence, India’s economic fundamentals remain robust. According to SBI Research, GDP growth in the first quarter of FY26 is expected to range between 6.8 and 7 percent, with gross value added estimated at 6.5 percent, buoyed by higher discretionary spending. Analysts say that while the pain of tariffs will be real for certain sectors, it could ultimately drive India toward greater resilience and long-term gains.