Vernacular Series | Marathi | India's Comprehensive Economic Plan for Co...

To conduct a comprehensive discussion on preparing a plan for the Government of India to counter Donald Trump's tariff war against India, the following key aspects should be covered:

## Background and Context
- Overview of the tariff war: Trump initially imposed a 25% tariff on many Indian products and recently doubled it to 50% as a punitive measure for India's continued purchase of Russian oil amid the global Ukraine conflict [1][2].
- Impact on India-US relations: The tariffs are a significant setback in the strategic partnership between the two countries, risking diplomatic and economic ties [1][3].

## Economic Impact on India
- Affected sectors: Garments, gems and jewelry, footwear, sports goods, furniture, chemicals, textiles, leather products, food, and automotive sectors are among the most hit [2][4][5].
- Export threat: Around 70% of India's exports to the US are seriously threatened, putting $48.2 billion worth of exports at risk and potentially leading to job losses [6][7].
- Competitiveness loss: The high tariffs reduce the competitiveness of Indian goods in the US market compared to peers like China and Vietnam [4][5].

## Government of India's Response
- Resilience strategy: Prime Minister Modi has emphasized self-reliance, tax relief measures, and boosting domestic consumption ahead of key festivals [8][7][9].
- Trade talks: India-US bilateral trade agreement negotiations are ongoing but have stalled; no immediate sign of rollback from the US side [3][10].
- Economic support plans: Considerations include a ₹25,000-crore Export Promotion Mission, trade finance support, regulatory clarity, e-commerce hubs, warehousing, and branding [10].

## Strategic and Tactical Measures
- Diversification of markets: Target new export destinations in Latin America, the Middle East, the UK, and Japan to reduce dependence on the US market [1][11].
- Supply chain resilience: Explore relocating production or sourcing to tariff-favored countries or creating multi-source supply chains [12].
- Setting up a "war room": For real-time monitoring and rapid response on trade developments and alternative options [12].
- Sector-specific reforms: GST revamp and support to labor-intensive industries to stimulate domestic demand and cushion export losses [10].

## Challenges and Negotiation Strategy
- Managing diplomatic fallout while protecting national interests.
- Addressing US demands around market access, particularly in agriculture and dairy [7].
- Balancing retaliation risks with global trade rules and long-term relationships.

These points provide a comprehensive framework for discussion, covering the tariff escalation, economic challenges, government countermeasures, strategic adjustments, and diplomatic dimensions of the tariff war between India and the US under Trump's administration