New Delhi– India’s former Commerce Secretary G.K. Pillai on Thursday described the new U.S. tariff on Indian exports linked to oil trade with Russia as “discriminatory,” warning that it has undermined New Delhi’s trust in Washington’s leadership.
Pillai argued that it was unfair to single out India when China, Europe, and even the U.S. itself continue trading with Russia. He noted that about 55 percent of Indian exports will fall under the higher duty, with sectors such as textiles, chemicals, jewelry, and seafood likely to be hit the hardest.
“The exact consequences will be clear only in a month or two, but exporters are already working to cushion the blow,” Pillai told IANS.
He added that Indian exporters might partly offset the losses by tapping into the domestic market, especially the country’s fast-growing luxury segment.
Under President Donald Trump, the U.S. on Wednesday imposed an additional 25 percent duty on Indian goods, doubling the tariff to 50 percent. Exports of electronics and pharmaceuticals remain exempt.
Government sources said New Delhi is consulting exporters on strategies to expand shipments of key products such as textiles, leather, gems, and jewelry to new markets. Officials are also weighing financial support measures for companies hurt by the tariff hike.
The Commerce Ministry is scheduled to meet with exporters from multiple industries later this week to discuss diversification plans. At the same time, the ministry is fast-tracking the “Export Promotion Mission” announced in the Union Budget 2025–26.
In the next two to three days, officials will hold consultations with stakeholders on boosting exports to alternative markets, according to an official. (Source: IANS)
