India Ramps Up Diversification Drive to Counter 50% US Tariff Hike
India has announced a plan to expand its export outreach to 50 countries, focusing on West Asia, Africa and other emerging markets, in response to steep US tariff hikes. The move follows Washington’s decision to charge a 25% tariff on Indian imports, with an additional 25% imposed on August 27, 2025, the highest rate since the Great Depression.
The tariffs, justified by the US as a response to India’s continuous imports of subsidised Russian oil, apply to products including steel, aluminium, and automobiles. Rates will reach 50% on metals and 25% on imported cars, significantly reducing India’s competitiveness in comparison to rivals like Turkey and Vietnam.
India’s merchandise exports to the United States, which are worth more than $80 billion per year, are presently under pressure. June exports remained steady at $35.14 billion. The commerce ministry is exploring new markets, assessing product demand, and improving industrial efficiency.
Priority nations are those with an increasing demand for Indian textiles, marine products, and gems. Export promotion bodies will be hired to find new buyers and channel surplus goods to local markets where possible.







































































































































































































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