India announced that it will not impose countermeasures following the U.S. government’s decision to double tariffs on a range of Indian goods, instead choosing to focus on export diversification and domestic economic support.
The United States recently raised tariffs to 50% on major Indian exports—including garments, chemicals, and jewelry—citing India’s continued imports of Russian oil as a violation of Washington’s economic pressure campaign on Moscow.
Trade Minister Piyush Goyal said that India will not respond with reciprocal tariffs. Speaking to reporters in New Delhi, he emphasized that the country is instead working to reduce its reliance on specific export markets by opening new trade channels and increasing domestic demand.
“We are not going to respond with knee-jerk protectionism,” Goyal said. “Our priority is to protect livelihoods by supporting exporters and building new markets.”
Finance Minister Nirmala Sitharaman echoed that message, assuring Indian exporters that the government is ready to provide direct support. This may include stimulus measures and targeted relief for industries most impacted by the new tariffs.
“The government stands with Indian exporters,” Sitharaman said. “We will act where needed to protect jobs and ensure business continuity.”
Despite the trade escalation, India’s economy is showing signs of resilience. GDP grew 7.8% in the second quarter—beating earlier estimates—thanks to solid gains in manufacturing, construction, and agriculture. The stronger-than-expected data has helped ease immediate concerns over the potential economic hit from the new tariffs.
The Indian government has also used the moment to reinforce its domestic economic narrative. Prime Minister Narendra Modi urged the public to buy more locally made goods, a message aligned with his government’s broader push for self-reliance.
