The Indian government is emphasizing a Swadeshi-driven approach to strengthen self-reliance and reduce dependence on exports. Prime Minister Narendra Modi has urged citizens to support domestic industries by being “vocal for local” and prioritizing Indian-made products.
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| Prime Minister Narendra Modi |
The 50% U.S. tariffs on Indian imports officially
came into effect on Wednesday, August 27, 2025, after the U.S. Department of
Homeland Security (DHS) uploaded the notification to the official register a
day earlier. The decision stems from President Donald Trump’s executive
order on August 6, which imposed an additional 25% duty on Indian imports,
citing India’s continued oil trade with Russia. This comes on top of the
earlier 25% tariffs introduced on July 31, making it the highest tariff rate
globally on Indian exports.
In response, the Indian government is pushing a
renewed focus on self-reliance, with Prime Minister Narendra Modi urging
citizens to embrace the “vocal for local” movement. Speaking on Tuesday,
August 26, Modi called on Indians to reduce dependence on imports and support
domestic products to cushion the blow of U.S. restrictions.
Industry bodies, however, have raised concerns about the economic fallout. According to early estimates, more than $47 billion worth of Indian goods may now be subjected to the higher tariff rate, hitting key sectors such as textiles, apparel, seafood, and engineering goods. Exporters from hubs like Tirupur, Surat, and Noida fear a significant loss of competitiveness, particularly against rivals from Vietnam and Bangladesh, who enjoy lower tariff regimes in the U.S.
While the government positions the crisis as an opportunity to accelerate domestic production and reduce import dependence, the immediate reality for exporters remains bleak. With the U.S. being India’s largest export market, businesses are bracing for a sharp decline in shipments, job losses, and disruptions across supply chains.
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