As the Trump administration slams a staggering 50% tariff on Indian goods half of it specifically targeting India’s purchase of Russian oil threatening millions of jobs in labor intensive sectors and rattling exporters from Surat to Chennai, India faces an urgent imperative to pivot decisively toward alternative markets in Eurasia, the Gulf, and ASEAN, leveraging free trade agreements, strategic investments, and diaspora networks to safeguard its economy, protect livelihoods, and assert its place in a rapidly shifting global trade order.
The sudden imposition of a 50% tariff by the United States on Indian goods half of it linked to India’s purchase of Russian oil has sent shockwaves through the country’s export sectors, particularly those that employ millions of workers, including textiles, gems, jewellery, and leather. While pharmaceuticals and electronics were spared, the tariffs threaten to derail livelihoods and regional economies across India.
For exporters, the immediate impact is severe: cancelled orders, halted production, and layoffs already reported in key centres such as Surat’s jewellery hubs. But the crisis also holds a broader lesson: India cannot depend on a single market, particularly one so volatile and politically charged. Washington’s move is a stark reminder that global trade is increasingly multipolar, and India’s economic strategy must evolve accordingly. It’s time to look beyond Uncle Sam.
One of the most promising alternatives lies in the Eurasian Economic Union (EAEU), led by Russia and encompassing Belarus, Armenia, Kyrgyzstan, and Kazakhstan. With a combined GDP of $6.8 trillion and 180 million consumers, the bloc represents a largely untapped export frontier. Russia, India’s fourth-largest trading partner, remains central, not only due to energy purchases but also as a gateway to the entire union. The recent signing of the Terms of Reference for a free trade agreement signals that negotiations are progressing seriously.
Opportunities abound for Indian exporters: machinery, crockery, and consumer goods are in demand, while Kazakhstan’s rich resources and weak manufacturing base offer a chance for India to establish production lines, creating jobs for Indian workers and diversifying supply chains. Beyond trade, this engagement could bolster the Indian rupee and provide a strategic cushion against US-centric shocks.
The Gulf Cooperation Council (GCC) offers another vital lifeline. Comprising Saudi Arabia, the UAE, Qatar, Oman, Bahrain, and Kuwait, the GCC has long been a pillar of India’s trade and labour migration strategy. Bilateral trade exceeds $161 billion, with millions of Indians living and working across the region. The GCC is central to India’s energy security, providing over 60% of crude oil and 70% of natural gas imports.
But the potential extends beyond energy: formalizing and concluding the ongoing FTA negotiations would reduce trade barriers, facilitate the cross-border movement of labour and capital, and accelerate digital and financial integration. The success of the India-UAE CEPA demonstrates what is possible: doubling trade volumes, reducing tariffs on 80% of traded goods, and enabling Indian fintech and payment systems to function seamlessly abroad. An early and ambitious FTA with the GCC could solidify India’s presence in the region for decades to come.
Finally, ASEAN represents a fast-growing and dynamic market that India cannot afford to overlook. With a combined GDP of $3.6 trillion and 700 million people, the bloc is already India’s fourth-largest trading partner. Yet structural issues cumbersome rules of origin, barriers to market access, and the unintended influx of Chinese goods have hindered full exploitation of this relationship. Revising the FTA now can unlock enormous potential, particularly for countries like Singapore and Malaysia, where bilateral trade has already surged to $35 billion and $20 billion respectively. With many ASEAN nations facing similar pressures from US tariffs, there is an opportunity for India to emerge as a preferred trade partner, supplying both goods and investment while deepening strategic ties.
The overarching message is clear: India must pivot quickly, diversify aggressively, and seize new opportunities in Eurasia, the Gulf, and Southeast Asia. The tariffs are a wake-up call that reliance on a single market especially one governed by unpredictable political winds is a dangerous gamble. At the same time, domestic reforms are essential: strengthening manufacturing, modernizing logistics, and enhancing competitiveness will ensure that India is not just a reactive player but a proactive global contender. By looking beyond the US, India can turn a crisis into an opportunity protecting jobs, securing exports, and building a resilient, multipolar economic future.