Business

India to Trump tariffs: What? Us worry? Why?

At first glance, Trump tariffs look steep and scary. India needn't worry too much though. US has let Indian IT services and the pharmaceuticals sector off the reciprocal tariff list. These two sectors bring in huge amount of exports foreign exchange for India. The more nuanced part of India's stance will decide where to concede. It will need to select sectors where US goods could actually drive domestic consumption, which is the key driver of the Indian economy as well as private investment demand, for instance in the textiles sector.

How do you deal with a man who hasn’t even spared the penguins? Do you go on an offensive and unleash a volley of retaliatory tariffs? Not if it happens to be the largest economy in the world. Not if the country in question happens to be a very popular vacation destination for Indians, ranking as the second largest market for the US in terms of tourist arrivals. New York state of mind, anyone? Not if many of Indian citizens’ children study.