Paper: GS – II, Subject: International Relations, Topic: India’s relations with major powers, Issue: Effect of tariffs on India-U.S. relationship.
Context:
U.S. decision (2025) to double tariffs up to 50% on a wide range of Indian exports raised concern in India. Despite trade frictions, the India–U.S. relationship remains resilient, anchored in strategic convergence, trust, and people-to-people ties.
Key Highlights:
Economic Impact of Tariffs:
- India’s exports to U.S. (2024): $87.3 billion: U.S. is India’s single largest trading partner.
- Goods at risk (approx. $48–$55 billion) due to tariff hikes.
- Labour-intensive sectors hit hardest:
Sectors Not Directly Affected by Tariffs:
- Pharma: Supplies 40% of America’s generic drug demand.
- Services & IT: $38.7B in FY 2024-25 and Indian IT firms power Fortune 500.
- Defence & Aviation: Indo–U.S. co-production, intelligence sharing, military exercises.
- Energy & Clean Tech: LNG imports, renewables, hydrogen cooperation.
- Innovation & Space: NASA–ISRO joint missions, climate projects.
Strategic Collaborations:
Resilient Partnership Beyond Tariffs:
- Tariff hikes make headlines, but do not define ties.
- India–U.S. partnership has weathered Cold War suspicions, sanctions, and trade disputes.
- Today, partnership anchored in Strategic depth (defence, space, energy), Economic convergence (services, pharma, IT), Cultural trust (diaspora, shared values).
Conclusion:
Tariffs may disrupt markets but cannot derail a partnership rooted in trust, people, and strategic convergence. India–U.S. ties go beyond trade; they represent a resilient, long-term partnership essential for global stability and innovation.
https://www.cnbc.com/2025/09/02/trump-india-us-china-tariffs-trade.html
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2025 preparation.
FOLLOW US ON:
◉ YouTube : https://www.youtube.com/@CivilsPrepTeam
◉ Facebook: https://www.facebook.com/LaExcellenceIAS
◉ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040
