Will Trump's Tariffs Impact India's Growth Trajectory?
Click to start listening
Synopsis
As India's economy continues to flourish, experts caution that the recent tariffs imposed by Trump are merely a temporary setback. In an exclusive interview, former US official Raymond Vickery stresses the importance of resilience and strategic partnerships in navigating this challenge.
Key Takeaways
- India’s economy is resilient and can withstand short-term challenges.
- Tariffs may slow growth but will not halt India’s upward trajectory.
- Enhancing trade partnerships is crucial for unlocking new opportunities.
- India is positioned to lead in the new economic order.
- Economic cooperation is a pathway to shared prosperity.
New Delhi, Aug 1 (NationPress) India’s economy is on a robust growth trajectory, and the recent announcement of a 25 percent tariff by US President Donald Trump should be perceived as a temporary hurdle rather than a significant barrier, stated Raymond Vickery, a Senior Associate at the Centre for Strategic and International Studies (CSIS) and former US Assistant Secretary of Commerce on Friday.
In an exclusive interview with IANS, Vickery noted that while this decision signifies a departure from the multilateral trade framework that has bolstered global commerce for decades, India’s long-term outlook remains positive.
“India’s economic resilience, vast market, and willingness to embrace competition will propel its progress,” he informed IANS.
He emphasized that India should concentrate on enhancing its trade partnerships and decreasing tariffs to unveil new avenues for growth.
Vickery further indicated that India’s ascent as a global economic powerhouse is linked to its capacity to integrate effectively into the world economy.
“India is strategically positioned to take the lead in the emerging economic landscape. While tariffs may temporarily hinder certain sectors, they cannot derail India’s upward trajectory,” he asserted.
Vickery encouraged leaders to view this moment as a chance to fortify trade relationships on more resilient foundations.
“The India–US partnership is crucial, and now is the moment to harness economic cooperation as a catalyst for mutual prosperity,” he added.
Meanwhile, late on Thursday, Trump enacted an executive order imposing a 25 percent tariff on India effective Friday.
However, this order did not impose additional tariffs on India for acquiring Russian energy or its participation in the BRICS group—issues Trump had previously raised concerns about.
When the tariff threat was first issued, India firmly declared it would “take all necessary steps to safeguard our national interests.”
“The country will adopt all essential measures to protect national interests while negotiating trade agreements,” stated Union Commerce Minister Piyush Goyal on Thursday.
Point of View
It is crucial to acknowledge that while the recent tariffs imposed by the US may create short-term challenges for India, the nation's long-term growth story remains intact. India's resilience and economic strategies will play a significant role in overcoming these hurdles, ensuring its position as a key player in the global economy.
NationPress
08/10/2025
Frequently Asked Questions
How will Trump's tariffs affect India's economy?
While Trump's 25 percent tariff poses immediate challenges, experts believe it won't derail India's long-term growth. India is well-positioned to adapt and continue its economic ascent.
What steps is India taking to protect its national interests?
India has stated it will take all necessary measures to safeguard national interests while negotiating trade agreements, emphasizing its commitment to protect its economy.
Is the India-US relationship still strong despite the tariffs?
Yes, the India-US relationship remains vital, and experts urge leaders to use this moment to strengthen trade ties for mutual prosperity.
