New Delhi Plans Policy Reset to Offset Trump's Tariff Blow

India plans reforms to boost manufacturing, attract FDI and remove procedural bottlenecks

- Dhirendra Kumar

With the US slapping a punishing 50% tariff on Indian goods, New Delhi is changing tack that will help in the long term. Even as uncertainty looms over a bilateral trade agreement with the world's largest economy, the Indian government on its part is working on a reform-heavy game plan to increase ease of doing business, strengthen manufacturing, and keep foreign investors coming, two senior government officials directly involved in the consultations told Mint, requesting anonymity.

US President Donald Trump's latest move, which will double the tariff on Indian goods from 27 August, targets $6.2 billion in garment exports, $1.3 billion in leather goods, and billions more in chemicals, pharma, petroleum and shrimp. While the textile and leather sectors face an immediate competitiveness shock, the Narendra Modi government is using the crisis to accelerate ease-of-doing-business reforms: a single-window clearance system modeled on passport services, side-letter deals with trusted partners, and streamlined land and contract processes.