The United States has enforced steep 50% tariffs on Indian exports, weeks after President Donald Trump added a 25% penalty over India’s purchases of Russian oil and weapons.
The move, which makes India one of the hardest-hit countries globally, threatens exports, jobs, and growth in the world’s fifth-largest economy.
In response, Prime Minister Narendra Modi has promised sweeping tax cuts and urged self-reliance, calling on citizens and small businesses to embrace “Made in India” goods.
He described the planned reforms as a “Diwali gift” to ease hardship, while analysts warn the tariffs could disrupt millions of livelihoods.
India’s government is now pushing a major overhaul of its indirect tax system, including a simplified two-tier Goods and Services Tax, alongside
earlier income tax cuts worth billions of dollars.
India’s stock markets have welcomed the announcements, and S\&P Global recently upgraded the country’s sovereign rating after 18 years, signaling stronger investor confidence.