New Delhi: Prime Minister Narendra Modi’s chief financial advisor, V Anantha Nageswaran, has said that the 50 p.c tariff imposed by US President Donald Trump on Indian items could possibly be cushioned by sturdy home consumption and rising rural demand.
Nageswaran famous that the hostile affect on employment can be largely restricted to export-oriented sectors with vital publicity to the US market.
“There will probably be offsetting results additionally. Sure, job loss will probably be contained to these export-oriented models which can be very extremely uncovered to the USA. Second, a few of them will be capable to discover different markets, and a few of them may resolve to take a medium to long-term view that if the continuing uncertainties associated to the tariffs are going to be contained and short-term, they could select to look past that and never essentially let go of their staff,” he instructed information company ANI.
#WATCH | Delhi: On US tariffs, Chief Financial Advisor V Anantha Nageswaran says, “There will probably be offsetting results additionally. Sure, job loss will probably be contained to these export-oriented models which can be very extremely uncovered to the USA. Second, a few of them will be capable to discover… pic.twitter.com/sljGixGSjp
— ANI (@ANI) August 30, 2025
He additional highlighted that any losses stemming from the US tariffs is likely to be balanced out by sturdy home demand, significantly pushed by a very good monsoon and the resultant enhance in agricultural and rural consumption.
“However other than that, I might additionally wish to level out to you that there could possibly be compensation coming from increased home demand. We have now had an excellent monsoon season. Agriculture and rural demand will probably be rising… So it isn’t mandatory that job losses, in the event that they occur, will probably be of a big nature,” he added.
Earlier this month, President Trump introduced a 25 p.c base tariff on Indian imports to the US, adopted by an extra 25 p.c tariff linked to India’s continued buy of Russian oil, amid the continuing battle in Ukraine.
The Trump administration has warned that India might face secondary sanctions if it fails to cut back its reliance on Russian vitality. White Home financial advisor Peter Navarro remarked that “the street to peace in Ukraine goes by way of Delhi.”
India has condemned the tariffs, calling them “unjustified.”