Trump’s Tariffs Shake Indian Exports
The Trump administration has imposed a sweeping 50% tariff on Indian exports, effective August 27, disrupting industries that supply textiles, gems, shrimp, and more to American consumers. Economists warn the move could significantly impact millions of livelihoods and strain ties between the world’s largest and fastest-growing economies.
Modi Pushes Self-Reliance and Consumption
Prime Minister Narendra Modi has urged citizens to embrace Swadeshi — goods made in India — and increase domestic spending. Speaking at Independence Day celebrations in New Delhi, he emphasized self-reliance “out of pride, not desperation,” calling on small businesses to display “Made in India” signs as a symbol of resilience against global protectionism.
Tax Reforms Aim to Boost Growth
To counter economic headwinds, Modi’s government is rolling out fiscal stimulus. After a $12 billion income tax cut earlier this year, officials are preparing a simplified two-tier goods and services tax (GST) system, expected to free up around $20 billion for consumers. Analysts say the reforms, combined with lower interest rates and upcoming public-sector salary hikes, could spur demand in sectors like scooters, garments, and housing materials, helping sustain growth despite trade tensions.
