U.S. Trade Measures Pressure Indian Exports
The United States has enacted a 50% tariff on Indian imports, targeting products such as garments, seafood, and precious stones. The move is expected to challenge exporters and escalate trade tensions between the two nations.
Encouraging Homegrown Products and National Pride
Prime Minister Narendra Modi has called on citizens to prioritize Indian-made goods. During his Independence Day address, he encouraged shop owners and consumers to promote and purchase local products, framing self-reliance as a matter of national dignity and economic strength.
Tax Reforms to Stimulate Domestic Spending
To counter the impact, the government is advancing fiscal reforms. Following earlier income tax reductions, officials are planning a simplified two-level goods and services tax (GST). Analysts predict the changes will boost household spending, increasing demand across sectors like automobiles, apparel, and construction materials, while helping maintain economic growth.
