US tariffs: India set to bounce back bolstered by strategic reforms, robust domestic demand

New Delhi:  As India-US trade talks stall, the resilience of India’s economy is a cornerstone of its ability to weather these tariff pressures with minimal disruption as over the past decade, the country has transformed into a diversified economic powerhouse, bolstered by strategic reforms and robust domestic demand.

According to BJP national spokesperson Tuhin Sinha, the trade talks, initially aimed at fostering mutual economic benefits, descended into a stalemate as the US pressed India with ambitious and arguably unrealistic demands.

“Trump’s administration sought extensive market access for American agricultural products, pharmaceuticals, and technology services, while imposing steep tariffs on Indian exports such as steel, aluminium, textiles, and IT services. These tariffs, coupled with demands that threatened India’s domestic stakeholders, were met with resolute resistance from India, under the steadfast leadership of Prime Minister Narendra Modi,” he emphasised in an opinion piece that appeared in NDTV.

He further stated that committed to protecting the interests of farmers, fisheries, and Micro, Small, and Medium Enterprises (MSMEs), India refused to yield, prioritising its economic sovereignty.

“This principled stance, as noted by economists Stuart and Linda Stern in their 2023 book India’s Economic Ascendancy: Navigating Global Trade Challenges, has not only safeguarded India’s core sectors but positioned it to emerge stronger from the ongoing tariff chaos,” Sinha wrote.

A SBI Research report last week said that imposition of a 25 per cent penalty on goods trade with India, with a proposition of an additional 25 per cent on the world’s largest democracy, can be a bad policy decision for the US and its people.

India – strategically protecting its sovereignty – must continue to protect its farmers from likelihood of predatory practices of select global conglomerates who may vie for a lucrative “Desi” pie without investing in sustainable market infrastructure creation, anchoring agri value chain financing and being a partner in welfare schemes that upend ‘Ease of Living’ for our farming community, the report stressed.

According to Sinha, this tariff crisis presents India with a strategic opportunity to accelerate its pursuit of technological autonomy and expand its global market reach.

“The Atmanirbhar Bharat (Self-Reliant India) initiative, another visionary policy spearheaded by PM Modi, has driven investments in indigenous technologies, particularly in critical areas like semiconductors, 5G infrastructure, and renewable energy,” he emphasised.

The Production-Linked Incentive (PLI) scheme has attracted global tech giants like Apple, Samsung, and Foxconn, boosting electronics exports by 22 per cent in 2024, according to the Ministry of Electronics and Information Technology.

The tariff crisis has also reshaped the geopolitical landscape, creating opportunities for India to assert its global influence.

“By standing firm against coercive trade tactics, India has bolstered its reputation as a principled and independent power. This stance has opened the door to fresh alignments, particularly within the Russia-India-China (RIC) framework,” said Sinha.

Prime Minister Modi’s proposed visit to Beijing for the 2025 SCO Summit and his recent call with Brazilian President Luiz Inacio Lula da Silva signal India’s intent to deepen ties with BRICS partners.

“These diplomatic engagements, as noted by the Ministry of External Affairs (2025), reflect India’s strategic balancing act, leveraging the tariff dispute to enhance its geopolitical leverage. The potential revival of RIC cooperation, alongside strengthened BRICS collaboration, positions India as a pivotal player in a multipolar world. By fostering these partnerships, India is not only countering US pressure but also shaping a new global order that prioritises mutual cooperation over unilateral demands,” Sinha highlighted.

–IANS