India's Export Woes: Navigating Tariffs and Diplomatic Tensions with the U.S.

India may lose a competitive edge on $64 billion in goods exports to the U.S. due to Trump's tariffs and potential penalties for Russian oil purchases. The situation creates a diplomatic challenge, with India's officials engaging Russia while managing U.S. relations.

India stands to lose a competitive edge on approximately $64 billion worth of goods it exports to the U.S. due to President Donald Trump's 25% tariff hike combined with an assumed penalty regarding Russian oil purchases, as reported by four government sources to Reuters.

This development marks a significant diplomatic challenge for India, as it faces the highest tariffs amongst its Asian peers without explicit penalties yet enacted. Despite these economic concerns, the Reserve Bank of India has maintained its GDP growth forecast at 6.5% for the current financial year, keeping the rates steady.

As diplomatic tensions simmer, India's National Security Adviser Ajit Doval is visiting Russia, focusing on oil trade discussions and defense collaborations. This is part of India's effort to manage relations with both Moscow and Washington as the tariff implications unfold.

(With inputs from agencies.)