• US tariffs on Indian goods increased to 50%, impacting various sectors.
• Estimated loss: $55-60 billion in Indian exports primarily affecting textiles and jewelry.
• US-India trade negotiations remain stagnant over issues related to Russian oil imports.
• Exports to the US could decrease significantly, leading to job losses and economic slowdown in India.
• India seeks to diversify trade partnerships and bolster domestic industries in response to tariffs.

US President Donald Trump's decision to impose a 50% tariff on imports from India went into effect as scheduled, escalating trade tensions between the two countries. This move doubles the previous 25% tariff imposed earlier due to India's continued purchases of discounted Russian oil, which the US claims funds Moscow's military actions in Ukraine. The new tariffs apply to a wide range of goods, including textiles, gems and jewelry, footwear, and chemicals, threatening thousands of small exporters and jobs, particularly in Prime Minister Narendra Modi's home state of Gujarat, according to Channel News Asia and Bangkok Post.

Analysts forecast that these tariffs could affect up to $48.2 billion of India's exports, leading to significant disruptions in labor-intensive sectors. The Global Trade Research Initiative has suggested that sectors such as textiles, gems, and jewelry could witness a 70% decrease in exports, risking hundreds of thousands of jobs. The fallout from these tariffs could lead to lower GDP growth in India, with projections indicating a potential dip of 0.4 to 0.8 percentage points, according to reports from India Times and South China Morning Post.

Amid these developments, Indian government sources indicated that there is "no cause for panic", suggesting a belief that the diversified nature of Indian exports could buffer some immediate impacts. Nonetheless, they acknowledged that the secondary and tertiary effects of the tariffs could pose challenges to the economy in the long run. The finance ministry underscored the importance of ongoing trade negotiations to mitigate fallout, emphasizing that Indian exporters must prepare for the potential volatility wrought by the tariffs, as detailed by India Times and CBS News.

In response to potential losses, Prime Minister Modi has advocated for increased domestic production to achieve self-reliance, signaling that the Indian economy will adapt and seek alternative markets. This includes efforts to strengthen ties with countries like China and Brazil while pursuing Free Trade Agreements with other global partners, aiming to offset reliance on the US market. Modi's stance indicates a strategic pivot in India's approach amid escalating geopolitical tensions and trade challenges with the United States, as noted by Al Jazeera and The Jakarta Post.