Overview

• Washington implemented steep duties on Indian goods effective August 27, including a 50% tariff and a separate 25% levy tied to India’s Russia-linked oil purchases, according to DHS notices.
• India’s finance ministry said the immediate macro impact appears limited but warned of secondary and tertiary effects on exporters, investment and supply chains.
• Sectors seen most exposed include textiles and clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.
• Official data for July showed exports of goods and services up 4.5% year over year to $68.3 billion, merchandise exports up 7.3%, and the trade deficit widening to $11.7 billion.
• New Delhi is pursuing market diversification through recent UK and EFTA trade agreements and talks with the US, EU and others, alongside a reforms push including a next‑generation task force, planned GST changes and support reinforced by an S&P sovereign upgrade.