Tariff Turmoil: U.S. and India's Trade Tensions Escalate

U.S. President Donald Trump raises tariffs to 50% on Indian goods, straining relations between the two largest democracies and affecting India's exports. Experts highlight potential economic impacts, urging India to adopt less protectionist trade strategies and focus on diversifying its export base to mitigate risks.

On Wednesday, U.S. President Donald Trump enforced a significant increase in tariffs, doubling them to 50% on imports from India. This move has intensified the economic tensions between the two global leaders in democracy and trade partnerships.

Economists, including Radhika Rao from DBS Bank and Aastha Gudwani of Barclays, have assessed that while India's exports to the U.S. are relatively modest, the tariffs could severely impact sectors within the economy. They foresee potential risks to growth, affecting direct foreign investments and domestic job markets.

Rajeswari Sengupta and Aakanksha Shrawan emphasized the necessity for India to shift towards a more open trade approach. They advocate for strategic measures such as reducing trade barriers and reinforcing service export initiatives to stabilize and sustain economic growth amid the evolving global trade landscape.

(With inputs from agencies.)