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Tariffs

India's Economy Hit Hard by US Tariffs: Shashi Tharoor

Strategic Insights

— 1 min read

Shashi Tharoor, Congress MP and former diplomat, warned that the US tariffs on Indian goods have led to large-scale job losses and economic hardship in India. Speaking at a conference in Singapore, Tharoor highlighted the impact of the 50% tariff, including a 25% penalty for buying Russian oil, which has made several Indian exports unviable in the American market. The consequences include 1.35 lakh people losing their jobs in the gems and jewellery business in Surat, and significant losses in the seafood and manufacturing sectors.

Key Takeaways:

  • The US tariffs have led to 1.35 lakh job losses in the gems and jewellery business in Surat.
  • The seafood and manufacturing sectors are facing heavy losses due to the tariffs.
  • India needs to diversify its export markets to cushion the blow of the tariffs.
  • Tharoor urged Washington to adopt a uniform policy for all countries, including China, which is importing more oil and gas from Russia.
  • India and the US are close to finalizing a trade deal, with the first tranche of the agreement expected to be rolled out by September.
  • Tharoor launched a sharp attack on US President Trump, describing him as "unusual" and "unfair" in his diplomatic behavior.
  • The Congress leader highlighted the need to expand India's trade and political partnerships, pointing to the recent trade agreement with the UK as a positive step.
  • Tharoor suggested that India seek stronger ties with Europe, China, and Russia to boost its global standing.

Statistics:

  • 1.35 lakh people have lost their jobs in the gems and jewellery business in Surat.
  • The US tariffs have had a "very, very negative impact" on India's economy, making several Indian exports unviable in the American market.
  • The US decision has imposed a 50% tariff on Indian goods, including a 25% penalty for buying Russian oil.
  • The seafood and manufacturing sectors are facing heavy losses due to the tariffs.
  • India and the US are close to finalizing a trade deal, with the first tranche of the agreement expected to be rolled out by September.

Sources:

  • Shashi Tharoor, Congress MP and former diplomat
  • Hindustan Times
  • Donald Trump, US President
  • Piyush Goyal, Indian Commerce Minister
  • Sergio Gor, Pick for the next American ambassador to India
  • HT Digital Content Services

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