1. U.S. imposes 50% tariffs on Indian goods over oil purchases from Russia. 2. India's exports could decrease, impacting GDP growth forecasts significantly. 3. Pharmaceutical sector may face up to 250% tariffs, increasing vulnerability. 4. Engineering, textiles, and jewelry sectors are most exposed to new tariffs. 5. India's export competitiveness may decline against countries with lower tariffs.
The new tariffs could materially harm India's trade balance, similar to past tariff impacts in other major economies. For historical context, tariffs imposed during trade wars in 2018 resulted in significant market corrections, demonstrating the sensitivity of exporters like India.
The potential economic downturn and large trade partner shifts are likely to impact investor confidence and INDA's performance significantly, especially in the short term.
The tariffs will affect trade immediately as they take effect within 21 days, similar to earlier tariff implementations that showed immediate drops in export volumes.