Exporters Face Significant Pressure
The United States has levied a 50% tariff on Indian imports, affecting industries such as apparel, seafood, and jewelry. The measure is expected to disrupt export businesses and intensify trade tensions between the two nations.
Promoting Homegrown Products and Self-Reliance
Prime Minister Narendra Modi has called on citizens to prioritize Indian-made goods. In his Independence Day speech, he encouraged both businesses and consumers to embrace locally produced items, framing self-sufficiency as a source of national pride and economic stability.
Tax Reforms to Encourage Spending
To counterbalance the impact, the government is implementing fiscal reforms. Following earlier income tax reductions, officials are proposing a simplified two-rate goods and services tax (GST). Economists say the changes could increase household purchasing power, driving demand in sectors such as automobiles, clothing, and building materials while supporting sustained economic growth.
