Trade Hit by Steep U.S. Duties
The American government has enforced 50% tariffs on Indian exports, covering items such as clothing, seafood, and jewelry. The move threatens to undercut exporters and deepen strains in bilateral trade relations.
Focus on Self-Reliance and Domestic Goods
Prime Minister Narendra Modi responded with an appeal to strengthen local industry. In his Independence Day address, he urged citizens and shopkeepers to promote Indian-made products, portraying economic independence as a matter of national confidence.
Reform Agenda to Drive Consumption
To ease the pressure, the administration is moving forward with tax reforms. Building on earlier income tax reductions, it is planning a simpler two-band goods and services tax (GST). Analysts say the changes could release billions in consumer demand, supporting sectors from automobiles to construction materials and helping maintain economic momentum.
