The Impact of U.S. Tariffs on the Indian economy depends on what products they target,

The impact of U.S. tariffs on the Indian economy depends on what products they target, how large the trade volumes are, and how India responds.

Here’s a detailed breakdown:

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1. Trade Flow Disruption

• U.S. as a key market: America is one of India’s largest export destinations (about 17–18% of India’s total exports in recent years).

• If tariffs are placed on major Indian exports (like steel, aluminum, textiles, pharmaceuticals, or IT services), Indian exporters face reduced price competitiveness.

• This could cause a decline in export orders, affecting production and employment in those sectors.