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Trump's 50% Tariff Move a Blow to India’s Self-Reliance Drive

Published: August 8, 2025 · ENS | Economy & Trade

Trump's 50% Tariff Move a Blow to India’s Self-Reliance Drive

Moody’s Ratings warns that U.S. President Donald Trump’s decision to raise tariffs on Indian imports to 50%—through an additional 25% penalty—is likely to derail India’s Atmanirbhar Bharat (self-reliance) initiative. The elevated tariffs may strain the export sector, disrupt domestic supply chains, and hamper efforts to build a resilient, self-sufficient economy. 1

Additionally, Moody’s has cautioned that this tariff hike could significantly undermine India’s manufacturing ambitions and slow economic growth, potentially trimming real GDP growth by 0.3 percentage points for the fiscal year ending March 2026. 2

Key Considerations:

  • The tariffs wipe out prior gains from India’s domestic capacity-building and import tariff strategies.
  • Manufacturing sectors—especially electronics, textiles, and machinery—are most vulnerable.
  • The policy may force Indian firms to revisit export strategies and supply chain dependencies.

Source: Reuters via Moody’s Ratings 3 | ENS Live

 

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