- 5 months ago
US President Donald Trump’s additional 25% tariffs on Indian goods took effect Wednesday, doubling total duties to 50% after India refused to halt Russian oil imports. The hike, effective from 9:30 a.m., is expected to hit exporters across sectors and could weigh on growth prospects, analysts warned.
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00:00Top story that we are following here on India Today.
00:02The additional 25% tariffs all set to kick in in half an hour.
00:07Donald Trump's America First post before the tariffs kick in.
00:11Donald Trump now poses with an oil barrel.
00:14That's the poster that you are seeing on your screens.
00:16Donald Trump's oil barrel post.
00:18Is it a dig at the India-Russia oil deal?
00:21India is locked and loaded to counter these tariff claims.
00:24At 9.30, in about half an hour, we will see the tariff bomb dropping on India.
00:31The Modi government has gone ahead and said that they are standing with the Indian farmers.
00:36My colleague Karishma Sudhani is joining me on the story.
00:39Karishma India is locked and loaded.
00:41We understand the government also has been having a spate of meetings.
00:45All those sectors which will be impacted very badly,
00:48those are the sectors which now have a conversation with the government.
00:52government is looking at cushioning the blow that could come in from the additional 25% tariff.
00:59Well, absolutely right, Aishwara.
01:01It's been a while that government has been chairing important key high-level meetings on this.
01:06And yesterday was also a significant day before the whole accumulated 50% tariff kicked in.
01:14That PMO, the Prime Minister's office, held a high-level meeting with key officials from Commerce and Finance Ministry to discuss certain export measures.
01:23The Federation of Exporters have raised to the government that a lot of businesses across different parts of the country
01:29are heading for a temporary shutdown because of stalled operations and stalled exports.
01:35Textiles, apparel, leather, goods and mainly shrimps.
01:41These are the areas that have been highly impacted.
01:43Gems and jewellery has also been highly impacted.
01:47The government is trying its best to come out with export measures.
01:50Likely within this week, something could be released by the government.
01:55But it does not do away with the fact that we will have to absorb this loss, absorb this concern,
02:04at least until the BTA or the negotiations are recommenced.
02:10Thank you, Karishma, for giving us all those details.
02:12We are now looking at, in about half an hour, the additional 25% tariffs kicking in with regards to the United States of America.
02:22The D-Day is here.
02:24The deadline for the additional 25% tariffs all set to be imposed on Indian goods by the United States.
02:30That deadline will end today.
02:32Indian imports in America all set to be levied with a 50% tariff rate.
02:36Now the sectors that will be impacted the most, the textile sector, the shrimp exporters,
02:41gems and jewellery, the leather industry.
02:44They have already started bearing the brunt of these tariffs.
02:47Asserting its right to protect the national interest and safeguarding the strategic autonomy
02:51when it comes to buying Russian crude oil, India is looking to counter the impact.
02:56A key meeting was chaired by Prime Minister Modi, all set to soften the blow from these tariffs.
03:01Just before the new tariffs take effect, Donald Trump shared an America First poster.
03:06This is Donald Trump posing with an oil barrel.
03:09All the speculations now with regards to what Donald Trump will do next.
03:14This has been seen as a pointed dig at the Russia-India oil deal.
03:18While emphasizing on India's strength, Prime Minister Modi lashed out at the economic, selfish policies of the US
03:24and assured to keep and to prioritize India's interest at the top.
03:28Whereas President Donald Trump earlier had justified these 50% tariffs, pointing out that India is now purchasing oil and defense equipment from Russia,
03:37that's the reason why these tariffs are now being levied.
03:58Every person has to be zakat at the time.
03:59Every person for Russia.
04:00Every person has bought it.
04:01Every person for everyone.
04:02My CEO of the Assyria oil and the Goswami Malda,
04:07India was something like that.
04:09My executive director, the Osoriyah Malda,
04:10My president of the Assyria oil and the Saudi oil company,
04:12His."
04:15My president of the Assyria oil,
04:17My president of the Assyria oil,
04:18The law, the Kishan oil and the Whitney oil company,
04:21theiksberg, the president of the Assyria oil and the angels,
04:24the David oil and the other nations of the men
04:26I am very hopeful that we will find a way to conclude a satisfactory, mutually beneficial
04:50free trade agreement with the United States early rather than late and that would certainly
04:57take us to the next step of the visit of President Trump to India, a meeting of the Quad leaders
05:03and I think really setting us back on track.
05:0850% tariff is a big number. It will impact our exports, the dollar volume and also it would imply
05:17back-end in India, it will mean job losses in some sectors. However, India I think is taking
05:24a holistic view. One, the government is trying to and the industry itself is trying to diversify
05:31and open up new export markets, that's one. Also, the country itself, there is now a push
05:38to improve our own productivity, make our goods more competitive for global standards. So
05:44it will be a mix of steps taken externally by India and internally by India to face this
05:52hardship. But yes, some sacrifices will have to be made.
05:56I think it will maybe impact the business but in a very temporary manner. I think both
06:02countries are still in the negotiations, in their discussions to have a win-win deal in
06:07the bilateral agreements and I am sure that both the governments will actually, you know,
06:13reach a very good fruitful agreement which is mutually beneficial for both. So maybe there
06:17is some temporary, you know, hiccup that will come. But I think I am sure both countries will
06:22reach to a win-win agreement.
06:25Tariffs are obstacles to free trade, wherever they are, whether it's on the Indian side, whether
06:33it's on the European side, whether it's on the US side. So we would always be in favour
06:38of reducing tariffs to a minimum level.
06:41US President Donald Trump once again has claimed that he personally intervened to stop the nuclear
06:48confrontation between India and Pakistan during the heightened tensions. While Operation Sindur
06:54was underway, he also said that during a cabinet meeting at White House, he threatened India
06:59with steep tariff and refused to proceed with the trade deal unless the conflict was resolved.
07:03Listen in.
07:04I'm talking to a very terrific man, Modi of India. And I say, what's going on with you
07:15in Pakistan? Then I'm talking to Pakistan on trade. I said, what's going on with you in
07:21India? And the hatred was tremendous. Now this has been going on for a hell of a long time,
07:26like with sometimes with different names for hundreds of years. But I said, what's going
07:33on? I said, I don't want to make a trade deal. No, no, no. We want to make trade deal.
07:37I said, no, no, I don't want to make a trade deal with you. You're going to have a nuclear
07:41war. You guys are going to end up in a nuclear war. And that was very important to them.
07:48I said, call me back tomorrow, but we're not going to do any deals with you or we're going
07:52to put tariffs on you that are so high. You were there, Howard, right? You're going to
07:56put tariffs on you that was so high. I don't give a damn. Your head's going to spin. You're
08:01not going to end up in a war. Within about five hours, it was done.
08:08Now let's break down what exactly Trump tariff means and the impact that they will have.
08:13The sectors that will be the worst hit, gems and jewelry sector. We are also looking at the
08:18development which is happening and it's deeply concerning. Could hit thousands of jobs, disrupt
08:23the chain supplies. Tariffs also will now be distorting the prices and could delay the
08:28shipments. So gems and jewelry sector very closely looking at what's happening with regards to the
08:33United States of America. The pharmaceutical industry. India is the largest supplier of generic
08:39drugs to the U.S. Close to $220 billion savings to U.S. customers just in the year 2022.
08:4630% of the pharma company revenue comes from the United States of America. Textiles and apparels.
08:53That's another sector which is very closely looking at these development. Indian companies are
08:58major suppliers to U.S. retailers. Tough competition coming in from Vietnam and Bangladesh.
09:03Tariffs to make goods uncompetitive. Electronics. That's also one of the sectors. India became the
09:10largest mobile supplier to U.S. in 2025. Apple supplies to U.S. could be under threat at the
09:17moment. Electronics were exempted from the tariffs that were being levied in April.
09:22Oil refineries. This is another sector which will be impacted very badly. Uncertainty because of use of
09:28the Russian crude oil. Nearly 37% of crude oil imports come in from Russia. In Russian crude oil absence,
09:35prices will spike. Refinery's margin could also take a big hit. So that's also something that we are
09:42very closely looking at. These are the different sectors that could be impacted very badly.
09:47My colleague Siddharth Zarabi is now joining me on the broadcast.
09:54Siddharth, the million dollar question. When will the consumers start feeling the pinches in the prices?
10:03Ahead of all the tariff deadlines that have hit various countries, U.S. importers have increased their
10:10imports from that specific country, even in India. We have seen in the run-up to the deadline and the imposition
10:16of the additional 25% tariffs that there has been a bit of an import surge. And therefore,
10:23due to higher stocking levels, price increases will not translate straight off. But almost
10:29every single American economist that I have tracked say that this will have an inflationary
10:33impact for the American consumer.
10:35Siddharth, is there also retaliation which may come in from India?
10:39Before I answer that question, let's also inform our viewers and take note of the fact
10:46that there has been an acknowledgement and an announcement, both by the U.S. State Department
10:51and the Ministry of External Affairs, at least for the first time official communication after trade ties
10:58has spiraled off the two plus two intersessional dialogue from which there were some news reports
11:03which said that the jet engine deal, a long-pending one, long-negotiated one has come through.
11:10So what does that tell us? It tells us that there is still some level of discussion,
11:15collaboration and talks underway. As far as the trade talks are concerned, let's be very clear
11:23about it. The reason that we are now facing 50% tariffs and actually if you do a case-by-case,
11:31item-by-item analysis is actually much more because it adds to the previous tallies that had come
11:36in from Trump one and he's already threatening pharma tariffs as well. So it's a mug's game to talk
11:42about percentages. But please understand one point that I want to bring to our audience and to all those
11:48who are here on the panel. The West has imposed an umpteen number of sanctions on Russia.
11:56They have seized close to $350 billion dollars of Russian treasury money that was parked in Western
12:02banks. All possible imaginable curbs on business have happened. More than 1,200 Western companies
12:09have quit the Russian economy. Anything that could be done to coerce Russia to abandon its war of
12:18aggression in Ukraine has been done. Yet that war has not been ended. Are we to believe that purchasing
12:26the $700,000, $800,000 or a million dollars of Russian oil is going to convince Mr. Putin if that were to be
12:35barred the Indian purchases to stop the war? Is this American logic? I've heard the American
12:41Vice President say this. People from the State Department, one of his closest advisors talk.
12:45I mean, if there was anything that falls in the realm of, you know, a fantasy novel,
12:53these are those comments. You have put all your power in trying to bring Russia to kneel.
12:59Nothing has happened. And then you turn to nobody else but India and say, oh, you are financing the
13:05Russian war. You are responsible for this. This is utter madness. I have no other polite way of
13:11describing it. It is utter madness. And what do you think the common man on the Indian street will believe?
13:17Thank you, Siddharth, giving us all those details, breaking it down for us and also clearly pointing
13:23out towards the fact that there have been a lot of sanctions that have been imposed so far
13:27on Russia and India is not the only country that is buying oil from Russia. The other big question a lot
13:33of people are now asking is the impact on the apparel sector. That's also something that the government is
13:38very closely looking at. 10 billion dollars Indian shirts. At the moment, they are costing 10 rupee.
13:46Indian shirt at the moment is costing 16 dollars in U.S. The Bangladesi shirt at the moment is costing
13:5213.20 dollars in U.S. Now, if we look at the comparison, if you look at a 10 dollar Indian shirt in the U.S.
14:00at the moment, it's costing 16.40. Vietnamese shirt is 12. So that's the kind of comparison that we are seeing.
14:08Same, if we compare one 10 dollar Indian shirt in the U.S. at the moment, it's 16 dollars.
14:14Chinese shirts are costing 14 dollars. So that's the approximate conversion that we are seeing,
14:20which means that Indian at the moment, what U.S. is getting in terms of Indian shirts, that's much cheaper
14:28as compared to what they are getting from China, what they are getting from Vietnam and what they
14:32are getting from Bangladesh. My colleague Rajdeep Sardesai, in fact, spoke with American economist
14:39Jeffrey D. Sack. They spoke about what these tariffs mean and how will it impact the India-U.S.
14:44relationship. Listen in. So as the tariff war now threatens to explode, I'm joined by a very special guest.
14:53Joining me from New York is one of the world's leading economists and public policy analysts, Jeffrey,
14:58Professor Jeffrey Sachs joins me from New York. Appreciate your joining us, Professor Sachs.
15:04You've been a clear critic of Donald Trump's tariff policies. You've described them in the past as stupid,
15:10bizarre, economically reckless and self-destructive of U.S. foreign policy interests.
15:16Despite that, as we've seen, the Trump administration has decided to go ahead with 50% tariffs on Indian goods,
15:22including a 25% tariff tied to India's Russian oil purchases.
15:27Do you believe that Donald Trump has simply lost it or is he arm-twisting India?
15:33Well, he's trying to arm-twist India, but he's not going to succeed. What he is succeeding in doing is uniting the BRICS countries,
15:43bringing India closer to Russia, to China, to Brazil, to other major economies in the world.
15:54He is isolating the United States from the world economy because, after all, these tariffs are making the U.S. industry less competitive.
16:04Maybe they'll produce more for the home market, but they'll be less competitive internationally.
16:10And what countries like India and China and Russia will find out is that the fast-growing majority of the world economy is not the United States or even Europe.
16:23It is the emerging economies around the world.
16:27So I think Trump is shooting, I won't say himself in the foot, he's shooting America in the foot, my country.
16:34He's making it less prosperous and less competitive, but he is effectively uniting the rest of the world in closer relations.
16:45The fact is, despite all the criticism of his tariff policies, he's unrelenting. In fact, his trade…
16:57News that's coming in at the moment. The leather industry is all set to send delegations to Russia, Africa.
17:03Preparations at the moment are underway to cope with the tariff shock that is coming in from the United States of America.
17:09A sharp 50% tariff is being imposed by the United States of America.
17:14Several Indian export items will now get costlier and this has sent ripples to the leather industry.
17:20Leather industry is fearing. 90% trade could come to a standstill.
17:26Leather industry is reeling under the tariff trauma.
17:29In fact, the council for leather exports, that's now looking at sending delegations to different countries.
17:40Russia, Africa, that's where the delegation will be going.
17:43The leather industry is all sent to send delegates to Russia and Africa.
17:46Preparations are underway to cope with the U.S. tariff shock.
17:50A sharp 50% tariff imposed by U.S. on India.
17:54This day, there was an announcement for the tariff.
17:59In which day, it was 25% increased, then 25% increased.
18:03After that, all of our customers have been on hold.
18:07We were waiting for this time.
18:09We were waiting for 25-20 seconds.
18:11We were waiting for a solution.
18:12We didn't expect this.
18:13We didn't expect this.
18:14We didn't expect this.
18:15Now, we can't receive the additional 50% yet.
18:17This is not possible.
18:18We will report this.
18:19What will we do?
18:20So, we have to wait for it.
18:21Now, we are waiting for it.
18:22But the situation is on the other side.
18:24We are not getting worried about this.
18:25What do we do?
18:26All right.
18:27Basically, we hired them.
18:28In New York, US markets were here.
18:29When we saw that the market is right, we started a new segment, that was e-commerce export.
18:36After three years, we took the proper paper work, 3PL companies, we didn't do everything.
18:46Now, when the final launching came, when the tariff increased, our calculation has changed.
18:52This is why we need to do the government.
18:55We, like all the business associations, take some steps so that the people don't feel a little bit worried about it.
19:03In which country we are focusing or targeting, it is necessary.
19:07So, when the government doesn't have support,
19:10any leather organization or textile organization,
19:13any association, will keep it on any basis.
19:19My colleague Simar is now joining me on the story.
19:22For Kanpur, the place where we see most of the leather goods being made,
19:25we understand that the leather industry now, very closely following what's happening,
19:29also making a plan B, making sure that they are sending delegates to different nations
19:34to soften the blow from the tariffs.
19:37Well, yes, exactly, Ashwarya.
19:40As we know that the leather industry has taken a huge blow after the recent U.S. tariffs and Kanpur,
19:44being one of the biggest exporter, has been hugely impacted.
19:47Now, let alone from the central region, more than 2,000 crores of direct export is done to the U.S.
19:52and thousands of crores of indirect export is done.
19:54Now, in the recent development, a meeting was called by the National Council for Leather Export
19:59and a call has been taken that now the delegation will in fact send,
20:03will be sent to the countries like Russia and Africa to explore the options for the trade in the future
20:09because they can't rely on the U.S. anymore.
20:11What we are also hearing is that they are also trying to take a leverage of U.K. trade deal,
20:16in fact, exploring the options.
20:18Now, what this tariff has done to the leather industry is that they opened the competitions for the neighboring countries.
20:24Now, let me tell you that China, on which 30% tax is imposed, 20% to 90% to Bangladesh and Pakistan,
20:30the leather industry exporters fear that the business will go to the neighboring countries.
20:35Since now, the tax stands more than 60% on the leather industry.
20:40Also, later on from central region, more than 10 lakh people are being employed in this industry
20:45and after the recent tariff, you know, it has also come in danger.
20:49So, if the tariff doesn't go, these jobs will go.
20:51So, now exploring more options, the meeting was called and the delegation has been, you know, allowed
20:57and in fact, will be sent to the other countries in coordination with the ministry
21:01and what we are learning is that it might happen that the minister, Priyush Gowal,
21:05might accompany this delegation to the neighboring, to the several countries
21:10to, in fact, you know, talk of the trades and compensate the losses which is being done.
21:16Now, the leather exporters have few demands from the government.
21:18Also, they are trying to, in fact, bargain a deal.
21:21They are asking the government to, in fact, wave off the 25% and give them in support
21:25so that, actually, they can come to a point where they, in fact, are not finished completely
21:31but, in fact, can do their business with a limited margin.
21:35So, these kinds of developments and talks are being carried out by the industry,
21:39leather industry with the government.
21:40Now, it remains to be seen that what more development happens in this particular case
21:44because, as for them, it is very difficult to explore the new export options,
21:48new options within the countries which are already facing a lot of competition.
21:52So, it's a, you know, it's a very wild situation for them.
21:55It's a tough situation for them, but now it remains to be seen that what more unfolds
21:59and whether the talks with the government, you know, help them in saving their business
22:04or the whole, you know, thousands of crores of the leather export business
22:09which is in the central region might come to a complete halt,
22:13which is complete in the situation as of now.
22:16Thank you, Sima, for giving us all those details.
22:17It's the leather industry which is now trying to cushion itself.
22:20A conversation has opened up with the government of India.
22:22Delegations will be sent to Russia and Africa.
22:28Some time back, I had a conversation with geopolitical expert, Bill Drexel.
22:32He is speaking on how these tariffs will impact India.
22:35Take a look.
22:37Bill, the first question that comes to the mind is that
22:40are we seeing shadow boxing taking place between India and the United States of America?
22:44Donald Trump barely a few hours ago once again said that it's the U.S.
22:49which should be given credit for stopping war between India and Pakistan.
22:55Yeah, it's a good question.
22:56I think undoubtedly there's a lot of theater going on that can be difficult to separate from substance.
23:03President Trump's brand is very tightly tied with his ability to focus attention and drama on his actions, on his ambitions.
23:18So, yeah, I think that in general we can say this is kind of at the center of a lot of the drama going on with the White House and international relations with the United States today.
23:33Bill, when we speak about the Russian oil, it's very, very crucial for India because for us it is economically viable.
23:40If we do not do that, we will have a lot of impact coming into the consumer.
23:45So that's something that India is not budging at.
23:47Do you believe there could be any leaving with a president like Donald Trump?
23:53I think it's possible that President Trump would be willing to make some sort of meet in the middle agreement.
24:01It's true that this oil supply has built up over a few years now.
24:06And so to diversify immediately might be difficult.
24:11I don't think that the United States would be unreasonable about a plan to get oil from elsewhere.
24:19At the same time, though, I think it's very clear that President Trump is very focused on trying to stop the funds getting to Russia.
24:31So I think that at a minimum, for some sort of progress to be had, this administration is going to want some sort of serious commitment about significant action, even if it's not a wholesale immediate stop.
24:48The additional 25 percent tariffs for India all set to kicking in.
24:52Donald Trump's tariff bomb is now dropping on India.
24:56India is locked and loaded to counter the tariffs.
24:59Modi government has given out an assurance that the government is standing with the farmers.
25:04The additional 25 percent tariffs kick in now.
25:08Donald Trump's tariff bomb dropped on India.
25:11India is locked and loaded to counter the tariffs.
25:14Modi government has given out an assurance that the government is standing with the farmers.
25:23Modi government, we are standing with our farmers.
25:25Just 24 hours ago, we heard Prime Minister Narendra Modi speaking about the fact that for the government, it is India first.
25:32Similarly, how Donald Trump has been speaking about America first.
25:36In fact, just a couple of hours ago, we did see a poster that was posted by the US President Donald Trump, in which he was sitting with an oil barrel, taking a dig at the oil that India has been buying from Russia.
25:50As for all, I am here to know jealous of him from Russia,
25:55In other words, I am saying that the government is being made by theese.
25:58मेरे देश के लगुद्यमी हो
26:00किसान हो
26:03पशुपालग हो
26:06हर किसी के लिए
26:11मैं आपको बार बार वादा करता हूँ
26:16मोदी के लिए
26:19आपके हीत
26:22सर्वोपरी है
26:25मेरी सरकार
26:26I am very hopeful that we will find a way to conclude
26:56a satisfactory mutually beneficial free trade agreement with the United States early rather than late and that would certainly take us to the next step of the visit of President Trump to India, a meeting of the Quad leaders and I think really setting us back on track.
27:1850% tariff is a big number, the dollar volume and also it would imply back end in India it will mean job losses in some sectors.
27:31However, India I think is taking a holistic view, one the government is trying to and the industry itself is trying to diversify and open up new export markets, that's one.
27:44Also, the country itself, there is now a push to improve our own productivity, make our goods more competitive for global standards.
27:54So, it will be a mix of steps taken externally by India and internally by India to face this hardship but yes, some sacrifices will have to be made.
28:07I think it will maybe impact the business but in a very temporary manner.
28:12I think both countries are still in the negotiations, in the discussions to have a win-win deal in the bilateral agreements and I am sure that both the governments will actually reach a very good fruitful agreement which is mutually beneficial for both.
28:27So, maybe there is some temporary, you know, hiccup that will come but I think I am sure both countries will reach to a win-win agreement.
28:35Tariffs are obstacles to free trade, wherever they are, whether it's on the Indian side, whether it's on the European side, whether it's on the US side.
28:46So, we would always be in favour of reducing tariffs to a minimum level.
28:52My colleague Karishma Sudhani is now joining me on the story.
28:55Karishma, this is something which India has been very keenly looking at.
28:59On one side, we are looking at newer markets.
29:01On the other side, we are also looking at Kushning the Blue.
29:06Well, right Aishwarya, you know, Commerce Minister Piyush Goyal has been reiterating.
29:10In fact, at our Business Today Summit also, he had shared that India never bows down and we will continue to diversify.
29:19We are looking at new markets.
29:21We have a lot of FTAs that have been already concluded and many that could likely be concluded soon.
29:28The one with the UK that was recently done will be implemented soon by the end of this financial year.
29:35The one with the EU that's just about to begin.
29:38The idea is that India wants to diversify its global supply chain and not just be dependent on one or two countries.
29:45While the tariff situation has definitely made it difficult for us with our domestic industries per se, the couple of ones that export majorly to the US, we are still hopeful of the fact that renegotiations and bilateral trade agreement by October or November could actually solve this.
30:06Government is also hopeful and they've shared this on record.
30:11In fact, Minister of External Affairs as Jay Shankar has also said this, that we are in conversation with the US and it is not completely out of the back.
30:21But these things could take time because we've been firm on the fact that we are not going to give up our sensitive sectors, which Prime Minister Modi has very strongly and vocally mentioned about.
30:36Right, Karishma, you know, we have seen and you also rightly pointed out that we have the Commerce Minister Piyush Goyal on one side, Prime Minister Narendra Modi, speaking about the fact that India will not bow down.
30:46And it's fair also, Karishma, because on one side, the US is saying that they want to keep America first, then India also has the right to have India first.
30:55The priority should be India and not some other market.
30:59On a global play, each country wants to, of course, take the first spot.
31:05China has been also echoing the same for years.
31:08It's just that it stopped echoing it loud and clear now because it's more concentrated on now developing internally.
31:18While the US has been since since the reelection of Donald Trump in his last recent mandate, he's been echoing of the fact that he is going to play around with the tariff situation to ensure that America deserves the right amount of taxation tariffs and not and not the abundant one that they've been receiving.
31:44But India has always taken a very clear stance.
31:47We've always said that we are up for talking.
31:49We're up for negotiation.
31:51We are one of the important countries emerging on the developing front.
31:56And we've been talking about how after China, India has the capability and capacity to, of course, escalate towards a global supply chain market.
32:07We have never said no.
32:08We are just willing to do the negotiation on a fair and balanced way out and not give into a lopsided deal.
32:14Krishna please stay on with me Pranay Upadhyay from the IT Global is also joining us on the story.
32:21Pranay, we are now seeing shadow boxing of sorts taking place between India and the United States of America.
32:26Donald Trump, teasing also India in a way, posted just a couple of hours ago that picture sitting with the oil barrel pointing towards India-Russia oil deal.
32:36President Donald Trump has made it a point that he is accusing India for fueling the Russian oil industry and also fueling the Russian war machine in the Russia-Ukraine conflict.
32:53But, Ashwarya, we know where the reality lies.
32:56President Donald Trump has made it at his ego point that he wants to punish India because India has refused to succumb to US pressure and especially to cow-tow before President Donald Trump and his dictates.
33:09But the reality lies somewhere else.
33:12See the figures.
33:13Because figures speak loud and clear that the Russian bilateral trade with the United States have gone up by 20% since President Donald Trump assumed office.
33:22Also, this also remains a fact that China is the biggest importer of Russian oil, but President Donald Trump and his administration is not punishing China.
33:31Rather, they are offering, you know, bounties to, they are offering, you know, relief to China by the tariff cruise of 90 days and extended 90 days.
33:41And besides that, recently, President Donald Trump himself has said that he is, you know, he is ready to offer 6 lakh, you know, the Chinese student positions in US universities.
33:52So, clearly, this clearly shows that President Donald Trump has succumbed to the Chinese pressure.
33:57He has engaged with China in a trade war during his previous tenure, but now he has realized that this is not easy and he himself has admitted it.
34:05He admitted it.
34:06So, clearly, President Donald Trump, you know, whatever damage he has caused and his policies have caused in India-US ties, these ties may improve eventually.
34:18We will try and reconnect with my colleague Pranay there, a little bit of a technical glitch.
34:28What we are at the moment looking at, and that's something which Yavin Karishma was speaking about, is the fact that India is now bracing for what is to come.
34:36The industries are also looking at newer markets.
34:38Let's now break down what the impact of the Donald Trump tariff will be.
34:43The Indian sectors that have already been hit, textile sector, the apparel sector, orders are now shifting to the rivals.
34:50That's something that we are very closely looking at.
34:52If you look at the gems and the jewellery sector, then the exports have been hit, close to $10 billion in exports hit so far.
35:00Jobs also, unfortunately, are at a big risk.
35:03Auto parts, farmers and electronics, margins have been squeezed so far.
35:09When we speak about the seafood, seafood export from India to US is also a huge market.
35:14Shrimp exporters are now fearing that there could be steep losses in months to come.
35:19What could be next?
35:21That's the big question a lot of people are asking.
35:23Engineering goods, leather consumer durables.
35:26This is the sector which could suffer in months to come.
35:29Impact on exports.
35:30India's US shipment may actually fall by a whopping 50%.
35:34So that's the kind of data that we are looking at at the moment.
35:37Impact on India's GDP growth next year could also be seen, but it could be just a marginal dip.
35:430.2 to 0.4%, that's what exports at the moment are looking at.
35:47Risk of a deeper slowdown if more penalties are imposed.
35:51So this is something that we are looking at at the moment.
35:54Siddharth Zorabi, who is the group editor, is now joining me on the broadcast.
35:58Siddharth, this is a billion dollar deal which could make Trump happy.
36:02Do you think that this is just appeasement?
36:06Our negotiators went into meetings, fully prepared, came back with notes.
36:14They caught a few hours of sleep.
36:16Next day morning they see a tweet and a truth social post which has swung the balance completely some other way.
36:21How do you negotiate?
36:25When we look at India-China, when we look at India-Russia, will we be looking at more points of convergence given all that's happening in the geopolitical scenario at the moment?
36:35The USTR report a few months ago on foreign trade barriers had a chapter on all countries including India.
36:43I'll just give you two examples of how disconnected from reality is the US and its trade establishment with regard to Indian realities.
36:53They say that the MSP is a distorting mechanism and make critical remarks on it.
36:59Can you imagine that if the minimum support price regime were to be altered under US pressure, what would be the consequences?
37:07I will give only one more example before I hand it back to you.
37:11They have a problem with the fact that stents, India, which has one of the highest disease burdens when it comes to obesity, diabetes and consequently heart attacks.
37:21That price caps on stents are not good.
37:25Till we didn't have that, stents used to be very expensive.
37:29Look at the per capita income in India.
37:33What does a government do?
37:35Will it not have price caps on stents?
37:37Can it allow the price gouging that US companies are known for, the US healthcare system is known for?
37:43And now, President Trump literally 24 hours ago has said that he's going to bring down drug prices in the United States by 1400, 1500%.
37:53I don't know whether those numbers add up.
37:55I'm just trying to, you know, quote him verbatim.
37:59On the other hand, he's also saying that many outsiders have taken advantage of our pharma market, so we'll put price caps there also and tariffs.
38:09The US president himself is talking about how the US healthcare system has a very negative impact on costs.
38:16Yet you are critical of India trying to ensure that stents are available at a reasonable cost.
38:22It is, I can go on and on through that report, which will tell the average viewer of, of how impossible the American demands are.
38:31The fact that India engaged for seven months and has kept its patience is a tribute, a tribute, and I think Indian negotiator should actually get the Nobel Prize for peace in negotiations.
38:45Thank you, Siddharth, for giving us all those details.
38:48The big question now is, why is India known as the Maharaja of Defiance?
38:52We are now looking at newer trading partners and markets for our exporters.
38:57India's micro-stability, micro-economic stability at the moment is one of the driving factors why India is not bucking down.
39:04Consumption-driven, large domestic economy is also helping us.
39:08The GST reforms that we have seen over the past many years and also the reforms that are yet to come,
39:14they are the ones that will drive down prices and boost consumption.
39:18Big focus on desi manufacturing, that's something that we will be looking at.
39:22Fresh spate of reforms have now been unleashed.
39:25Growth rates are higher than the global average.
39:27So we have data, we have numbers and we have growth on our side.
39:32At the moment, we have low debt and low inflation and high forex reserves.
39:36So this is what is giving government the confidence that we can go ahead and manage the 50% tariffs that are being levied by the United States of America.
39:44The contained current account deficit is also helping India in a big way.
39:49So this is exactly what we are looking at.
39:51And that's the reason why the government is so, so confident.
39:54My colleague, Karishma Sodani, joining me on the story.
39:57Karishma, the data is in our favour.
39:59We are low on debt, low on inflation and high on the forex reserves.
40:03Well, Aishwarya, the government has been echoing the fact that the Indian economy is resilient and even despite the tariffs,
40:14they have been speaking about the fact that we will continue to absorb these risks.
40:20The headwinds is something that can be taken up and we are focusing on rather upscaling our current manufacturing levels
40:28and also increasing consumption in the domestic market.
40:33While the chief economic advisor recently also mentioned that these external headwinds and external shocks keep coming and keep going,
40:42it is since COVID that an economy like ours has got the confidence to be able to absorb any kind of geopolitical headwinds and rather stay resilient.
40:53Even if you look at our markets, they've been showing no signs of grave distress when it comes to the tariff announcements,
41:02because I think domestic investors majorly have also accepted the fact that this is a very dynamic and vulnerable situation
41:09and the government has the appetite to be able to kind of, with its measures, policy measures, be able to absorb any kind of external shocks that's coming by.
41:18Right. Thank you, Koreshma, giving us all those details, putting things in perspective.
41:25It's the data and the numbers that are in favour of India.
41:28That's the reason why the government very clearly has said that they will not be backing down.
41:33In fact, the United States of America is India's largest export market, accounting for nearly a fifth of the outbound shipments that we see.
41:41A 50% duty could make India less competitive. That's something that we are looking at.
41:46Pharmaceutical industry, electronics, fuel refined for Europe and US markets, they are exempt for now.
41:52Take a look at this report to understand how these tariffs will impact India.
41:56What will be the impact of Trump's tariff tyranny on India?
42:15With the additional 25% tariff kicking in, several sectors will feel the pinch.
42:21India's exports of low-margin and labour-intensive goods have started gutting the tariff punch.
42:28India's massive textile industry, which accounts for 70% of exports, will be impacted.
42:35Manufacturers fear that their products will lose to lower-cost rivals from Vietnam and Bangladesh.
42:42And for now, they have halted production in Surat and Noida.
42:47Trump is taking the tariff, they are taking the tariff.
42:49Since the Saudi government is taking the tariff of India without asking them, they are taking their decision.
42:55So, we think that now we need to be able to replace the US market to increase our population.
43:01Another textile hub in the south, Tirupur near Coimbatore, is also feeling the pinch.
43:09Then there's the shrimp exporters who rely heavily on America.
43:13Based in Antra, they account for about 40% exports to the US.
43:18The steep tariffs risk has a dual impact.
43:21How?
43:22Well, it not only hurts exporters, but also threatens the livelihoods of low-wage workers who rely on these jobs to support their families.
43:31India's diamond industry, centred in Surat, is a huge impact.
43:58India's diamond industry, centred in Surat, is also feeling the tariff heat.
44:03With the US accounting for a major share of polished diamond imports, the 50% tariff will hit this sector hard.
44:11There are 30% exports in the US.
44:15That's why our production has stopped.
44:19Because in the international market, or in the USA,
44:22the amount of cost we pay for the amount of money, and the amount of tariff is on it.
44:27So, our products are high-valuable.
44:31That's why our customers can't take our products from there.
44:37Several sectors will feel the tariff heat.
44:40But the Modi government has assured they have a strategy in place to ensure minimum impact for Bharat.
44:48Your report, India Today.
44:54Prime Minister Narendra Modi, in his first-ever podcast interview with Zirudha CEO Nikhil Kamath,
45:00he had revealed that his risk-taking abilities have not been fully utilized.
45:04Listen in.
45:07I think that, the risk-taking ability, the risk-taking capacity is not being fully utilized.
45:14It is not being used.
45:15It is not being used.
45:16It is not being used.
45:17It is not being used.
45:18My risk-taking capacity is more than being used.
45:24The reason why I am not being used.
45:27I have no idea.
45:28I have never thought about it.
45:33And what I think about myself,
45:35that's not a risk-taking capacity.
45:40That's my opinion.
45:43If you don't have this day,
45:45if you don't have this day,
45:47then what will I do?
45:48I don't have to take it.
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