A government report has acknowledged the “immediate impact” of the U.S. tariffs on Indian exports, but it also notes that “secondary and tertiary effects” will pose additional challenges. The report emphasizes that while the tariffs appear to be on Indian products, they could trigger retaliatory responses from other countries and cause major shifts in global economic and strategic alignments. The ministry has stated that India is strategically pursuing a diversified trade strategy to sustain its resilient trade performance.
The report adds that the government’s focus is on implementing its “next-generation reforms,” which aim to simplify compliance for businesses, encourage investments in tourism and logistics, and attract foreign capital. These measures, including GST changes, are expected to strengthen domestic demand and help offset the tariffs’ effects.