Exporters Face Major Setback
The U.S. has introduced 50% tariffs on goods from India, striking industries that depend on overseas buyers, including apparel, seafood, and jewelry. The increase is expected to damage export revenues and escalate trade disputes between the two countries.
Appeal for Domestic Production and Use
Prime Minister Narendra Modi has responded by encouraging greater reliance on Indian products. During his Independence Day speech, he called on merchants and consumers to showcase and purchase locally made goods, framing the effort as a demonstration of pride and independence.
Tax Revisions Designed to Encourage Spending
To counter economic pressure, the government is moving ahead with changes to the tax system. After earlier reductions in income taxes, officials are drafting a simplified two-level goods and services tax (GST). Experts believe the reform will channel more money into households, raising demand across automobiles, clothing, and construction-related industries.
