Upcoming 50% Tariffs on India Could Backfire on US: Experts
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Punitive American tariffs on India kick in on August 27 after US President Donald Trump announced that the South Asian state will have to pay a 25 percent duty for its imports of Russian oil in addition to the 25 percent introduced earlier.
A resilient India is almost certain to withstand US' recent actions and emerge as a far stronger economy in the wake of its ongoing tense trade ties with the US, experts have said.
America's imposition of 50 percent tariffs on Indian products is not in accordance with the rulebook, which is why the US has been unable to find substantial global support on the matter, underlined Ashwani Mahajan, the National Co-Convener of Swadeshi Jagaran Manch (SJM), a Rashtriya Swayamsevak Sangh (RSS) affiliate.
For the unaware, RSS is the ideological fountainhead of the Bharatiya Janata Party (BJP), India's ruling party at the centre.
America's imposition of 50 percent tariffs on Indian products is not in accordance with the rulebook, which is why the US has been unable to find substantial global support on the matter, underlined Ashwani Mahajan, the National Co-Convener of Swadeshi Jagaran Manch (SJM), a Rashtriya Swayamsevak Sangh (RSS) affiliate.
For the unaware, RSS is the ideological fountainhead of the Bharatiya Janata Party (BJP), India's ruling party at the centre.
"In fact, the current administration in the US is facing severe criticism, including from influential Republican figures like Nikki Haley, for its hypocrisy," Mahajan told Sputnik India.
Under the strong leadership of PM Modi, India is withstanding American pressure, making it amply clear that the interests of its farmers, cattle breeders are non-negotiable, and therefore, it is important for the nation to be more resilient, Mahajan added.
In the last 11 years, India has strengthened its capacity in different sectors - defence, electronics, telecom, technology, payments system, and as a result of that, it is fully prepared to face any kind of turbulence arising out of the incoming US tariffs, the economist, who is also a professor at the prestigious University of Delhi (DU), noted.
In the last 11 years, India has strengthened its capacity in different sectors - defence, electronics, telecom, technology, payments system, and as a result of that, it is fully prepared to face any kind of turbulence arising out of the incoming US tariffs, the economist, who is also a professor at the prestigious University of Delhi (DU), noted.
"Also, these tariffs are not being imposed on India; these are being levied on commodities being imported from India, which are being used by the Americans. Hence, the prices of these products are going to go up, and that's why the American people have to pay for these tariffs. Additionally, these tariffs are almost certain to hike inflation in the US, hurting household budgets there," he emphasised.
On the other hand, there are many countries, particularly BRICS states, that are ready to import from India, and therefore, the impact of American tariffs on India will not be that significant, Mahajan stated.
Meanwhile, geopolitical expert Abhinav Pandya, who is the CEO and Founder of the Udaipur-based strategic affairs think tank Usanas Foundation, believes that India's internal economic strength is very strong, as its economy is not entirely dependent on exports.
With 1.4 billion, India's domestic demand is huge, which will be a big factor in compensating for the losses incurred due to the punitive US tariffs, he highlighted.
Besides that, India has begun scouting for newer markets, especially with friendly nations like Brazil, Russia, focusing on increasing bilateral trade worth billions of dollars in the next five years, the international relations pundit stressed.
Meanwhile, geopolitical expert Abhinav Pandya, who is the CEO and Founder of the Udaipur-based strategic affairs think tank Usanas Foundation, believes that India's internal economic strength is very strong, as its economy is not entirely dependent on exports.
With 1.4 billion, India's domestic demand is huge, which will be a big factor in compensating for the losses incurred due to the punitive US tariffs, he highlighted.
Besides that, India has begun scouting for newer markets, especially with friendly nations like Brazil, Russia, focusing on increasing bilateral trade worth billions of dollars in the next five years, the international relations pundit stressed.
"Among the regions where India is looking to establish robust trade relations are West Asia, Africa, Latin America, and Southeast Asia. Furthermore, India under Modi sees this as an opportunity to expand its trade ties in states that don't act like hegemons, and rather believe in establishing mutually beneficial relationships, unlike the US, which has again and again proved to be an unreliable partner," Pandya concluded.
