The Indian government has started to put together detailed plans to reduce the impact of the United States’ decision to impose a fifty per cent tariff on Indian goods. Authorities are working on strategies that will open up new markets, strengthen global outreach, and give priority to sectors such as textiles, gems, and jewellery. These sectors form a major share of India’s export economy and are among the most vulnerable to the steep tariff barriers introduced by the US. The government’s aim is not only to protect businesses in the short term but also to build long-term resilience for Indian exports in an uncertain global trade environment.
Officials from the Commerce Ministry have indicated that the new strategy involves a two-fold approach—on one hand, it seeks to expand India’s trade footprint across new and emerging markets, and on the other, it focuses on targeted promotion of key industries. Textiles and jewellery are at the centre of this renewed focus because they are highly labour-intensive industries that employ millions of people while also generating a significant portion of foreign exchange earnings. The fear is that without strong countermeasures, these industries may face major losses, affecting both the economy and employment.
As part of its global outreach plan, the government has identified forty countries where India will increase its presence through dedicated promotional programmes. This list covers some of the largest economies in the world, including the United Kingdom, Japan, South Korea, Germany, France, Italy, Spain, and the Netherlands. At the same time, attention is being given to emerging economies such as Mexico, Poland, Russia, and Turkiye, along with other key markets like Belgium, Canada, Australia, and the United Arab Emirates. These efforts will rely heavily on positioning India as a dependable supplier of high-quality, sustainable, and innovative products. Indian export promotion councils, in collaboration with Indian missions abroad, will play a lead role in executing this plan.
Industry leaders have welcomed the move, saying it comes at a crucial time when global trade is facing multiple challenges. Harsha Vardhan Agarwal, President of FICCI, highlighted that India’s economy has shown remarkable resilience in the face of global slowdowns. He pointed out that the combination of a strong domestic consumer base, stable macroeconomic fundamentals, ongoing reforms, and an entrepreneurial spirit continues to fuel growth. Agarwal further noted that the upcoming generation of GST reforms announced by the Prime Minister will provide additional momentum to India’s trade and economic expansion.
Exporters themselves recognise the importance of the US market, but also admit that the steep tariff has reinforced the need to reduce dependence on a single economy. They view diversification as essential for long-term security and stability. By spreading risk across multiple countries, Indian businesses can reduce their vulnerability to abrupt policy changes and trade restrictions in any one nation. This diversification strategy is not only about exploring new destinations for existing products but also about innovating and creating new product lines that can be marketed globally.
Such measures are expected to strengthen India’s role in global value chains, particularly in competitive sectors like textiles, gems, and jewellery. With increased outreach, new product development, and a wider geographical spread of trade partners, India aims to build a more secure export base. This would ensure that domestic industries are better shielded against external shocks and can continue to thrive in an unpredictable global trading system. The government’s plans represent a proactive approach to navigating global headwinds and underline its commitment to protecting the interests of Indian businesses.
