How the US is Empowering India’s Journey Toward Self-Sufficiency

The Indian government’s economic policy, “Atmanirbhar Bharat” (meaning “Independent India”), is encountering challenges due to new import duties from the US. Moody’s, an international rating agency, has raised concerns about how these tariffs might impact India’s economy.

The US has increased tariffs to 50% on Indian goods, particularly affecting the manufacturing sector. This move could slow India’s GDP growth by 0.3 percentage points in the fiscal year 2025-2026, down from an expected 6.3%. Moody’s highlights that these tariffs make India less competitive in industries like electronics, limiting its goals to strengthen its manufacturing base.

What does this mean for India’s ambitions? Longer-term tariff disputes could weaken Indian exports and stall investments in key sectors, which contradicts the Atmanirbhar Bharat initiative aimed at boosting domestic production across 14 major industries.

The recent US tariffs result from India’s decision to buy Russian oil, leading to additional duties. Historical context shows that India has been a significant purchaser of Russian military equipment and energy. The Indian Foreign Ministry responded strongly, branding these additional duties as unjust. It pointed out that many other countries engage in similar practices without facing repercussions.

Experts argue that while the tariffs present obstacles, India has substantial foreign exchange reserves to help navigate these external pressures. This stability could allow India to maintain its position as one of the world’s fastest-growing economies.

Historically, trade tensions between nations fluctuate, often influenced by geopolitical factors. Public sentiment reflects concern as social media discussions about these tariffs rise, indicating a growing awareness of the potential economic impact on everyday lives.

For a deeper dive into global trade dynamics, additional resources can be found in reports by the World Trade Organization, which provide valuable insights into how such tariff issues can reshape international relationships and economic strategies.

In conclusion, while the hurdles posed by US tariffs present a significant challenge, there remains optimism about India’s economic resilience and the continued journey toward self-reliance.



Source link