Overview

• Washington’s additional 25% levy tied to India’s Russian crude purchases took effect on August 27, lifting duties on many Indian goods to 50% alongside an earlier 25% reciprocal tariff.
• Finance Minister Nirmala Sitharaman met exporters and chaired an inter‑ministerial review as the government accelerates the Export Promotion Mission and weighs liquidity support such as moratoria and emergency credit lines that avoid prohibited subsidies.
• The sixth round of bilateral trade talks was postponed, with Indian officials insisting both the reciprocal and penalty tariffs must be addressed for a meaningful deal, even as working‑level engagement continues under the 2+2 framework.
• Bankers reported initial payment defaults by US‑reliant exporters and warned of rising stress in labour‑intensive sectors including textiles, shrimp, leather, and gems and jewellery, while the central bank signalled readiness to support growth.
• Commerce data show April–July exports rose 3% overall as US‑bound shipments jumped about 22% on frontloading, but flows to several other major markets contracted, and officials estimate roughly half of US trade is within the scope of the new duties.