Category: Indian economy
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Tariff Shock: How U.S. Duties Threaten India’s Textile and Carpet Exports
In a stunning escalation of trade tensions, the United States has imposed a steep 50% tariff on key Indian exports, pushing total duties on some products well above 60%. Among the worst-hit sectors are textiles, apparel (knitted and woven), and carpets—pillars of India’s export economy and rural employment. These sectors…
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Chip Shockwaves: How Semiconductor Tariffs Threaten India’s Manufacturing Ecosystem and Consumer Economy
The recent announcement of a proposed 100% tariff on imported semiconductors by former U.S. President Donald Trump has triggered alarm bells across the global supply chain—and India is no exception. Although aimed primarily at curbing dependency on foreign chipmakers and bringing manufacturing back to the U.S., the ripple effects of…
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India–U.S. Trade Talks: Between Strategic Opportunity and Harsh Realities
India is currently engaged in what could be one of its most challenging trade negotiations in decades. While optimism is natural in such moments, the political and economic dynamics suggest that the road to a mutually beneficial agreement with the United States will be anything but straightforward. At the surface…
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India Warns of Retaliatory Tariffs as U.S. Steel and Aluminum Dispute Heats Up
India’s recent move to escalate its trade dispute with the United States underscores the delicate balance between protecting national economic interests and navigating complex global trade rules. The government has formally reserved the right to impose retaliatory tariffs in response to U.S. duties on steel and aluminum, marking yet another…
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Trump’s Pharma Tariffs: A New Flashpoint in US-India Trade Tensions
President Donald Trump’s latest tariff announcement marks one of the most aggressive trade policy moves in recent years, setting the stage for a potential economic and diplomatic standoff between the United States and India. The policy introduces phased tariffs on imported pharmaceuticals, starting at a modest level but with the…
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India’s Diamond Industry Faces Mounting Pressures: The Case of Surat’s Declining Exports
For decades, Surat has been the glittering heart of the global diamond polishing and cutting industry, processing nearly 90% of the world’s diamonds. Known as the “Diamond City of India,” the city’s intricate craftsmanship, cost efficiency, and skilled workforce turned it into a global hub, supplying polished stones to luxury…
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Trump’s Tariff Threats and the Resilience of India’s Growth Story
Recent remarks by former U.S. President Donald Trump, suggesting that the “Indian economy is dead,” have sparked debate on whether stringent tariff barriers from the U.S. could significantly harm India’s economic trajectory. While such statements may capture headlines, the reality is more nuanced and rooted in both data and structural…
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The Indian Rupee’s Sharpest Monthly Fall Since 2022: Breaking Down the Drivers and Implications
In July 2025, the Indian rupee fell by approximately 2.09%, marking its steepest single-month drop since September 2022. At month-end, it closed around ₹87.5950 per USD, having slid as low as ₹87.74, before modestly recovering to near ₹87.58 . What Triggered the Steep Decline? 1. Surge in U.S.–India Trade Tensions…
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Indian IT in Transition: Facing the Heat from AI, Global Uncertainty, and Shrinking Demand
India’s IT sector, once the poster child of economic liberalization and global competitiveness, is now at a critical crossroads. The once-consistent trajectory of double-digit growth, vast campus hirings, and global expansions is facing disruption from a perfect storm: global macroeconomic headwinds, declining client IT budgets, disruptive AI technologies, and the…
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