Daijiworld Media Network - New Delhi

New Delhi, Jul 30: US President Donald Trump’s announcement of a 25% tariff plus an unspecified penalty on Indian imports starting August 1 has rattled trade watchers — but Indian business leaders say the shake-up may also create a silver lining.

While the move raises short-term concerns, particularly for India’s MSMEs, industry voices are calling it a wake-up call — and a potential turning point — in India’s integration into the global supply chain.

“This is more than a tariff decision — it’s a signal that global trade is undergoing a major reset,” said Hemant Jain, President of the PHD Chamber of Commerce and Industry (PHDCCI). He noted that Trump’s broader recalibration is also targeting China, Vietnam, and Bangladesh — indicating a trend of supply chain diversification that India could benefit from.

“MSMEs might feel the pinch initially, but India is now seen as a credible, democratic, and scalable alternative for global buyers who want to reduce their overdependence on a few countries,” Jain added.

He urged Indian manufacturers to focus on quality, compliance, and global competitiveness, especially in sectors like pharmaceuticals, electronics, textiles, and engineering goods, where India has potential to fill market gaps.

“Let’s treat this not as a setback, but as a springboard for long-term gain,” Jain said.

The Gem and Jewellery Export Promotion Council (GJEPC), however, took a more cautious view. Its chairman Kirit Bhansali appealed for diplomacy over disruption: “We urge both governments to return to the negotiating table. Bilateral trade is a cornerstone of economic stability for millions of workers in both nations.”

The tariff hike follows stalled trade negotiations between the U.S. and India, which have failed to produce a mini-deal despite months of discussions.

Trump, posting on his platform Truth Social, accused India of maintaining “the highest tariffs in the world” and implementing “strenuous and obnoxious non-monetary barriers.”

He also criticised India’s continued purchases of Russian military equipment and energy, calling them grounds for the additional penalty.
“India is our friend,” Trump wrote, “but we’ve done relatively little business with them because their tariffs are far too high.”

Despite the sudden escalation, trade experts point to India’s recent gains — like the UK-India Free Trade Agreement — as evidence that New Delhi can turn global trade volatility into new market access.

With China facing even steeper tariff increases and growing Western skepticism, many believe this is India’s moment to expand its export footprint — provided industry and policymakers rise to the challenge.

The next few months may be tough, but as global supply chains shift, India has a chance to reposition itself — not just as a backup to China, but as a frontline trade partner in the emerging global order.