India at crossroads: new strategies needed to overcome the American rebuff

The inevitable happened. Against all hopes that Narendra Modi's bear hugs will improve India’ India's relations with the US President Donald Trump, comes the final axe of a 50% tariff on all Indian goods exported to the US.

- ■Buroshiva Dasgupta

That's disaster for trade relations worth 80 billion dollars. Indian industries - like textiles, leather goods, gems and jewelleries and shrimp trade - that flourish by exporting to the US will slump, having a major toll on India's foreign exchange reserves and GDP growth.

There are several theories why Trump suddenly turned hostile to India. Some say Narendra Modi’s denial that the US did not intervene in bringing a ceasefire between India & Pakistan war — though Trump repeatedly said it did — angered the US president. Second reason is India’s refusal to stop importing oil from Russia which brought in the second 25% tax penalty in addition to the earlier blanket 25% tax on almost all other countries.