NEW DELHI– Former Commerce Secretary G.K. Pillai has sharply criticized the United States for raising tariffs on Indian exports over New Delhi’s oil trade with Russia, calling the move “discriminatory” and damaging to India’s faith in American leadership.
Pillai argued it was unfair to single out India when China, Europe, and even the U.S. itself continue to trade with Russia. He warned that about 55 percent of Indian exports would be hit by the new levy, with sectors such as textiles, chemicals, jewellery, and seafood among the hardest hit.
“The exact consequences will be clear only in a month or two, but exporters are already working to cushion the blow,” Pillai told IANS. He added that some losses could be offset through India’s large domestic market, particularly in the luxury segment.
The Trump administration this week slapped an additional 25 percent duty on Indian goods, doubling overall tariffs to 50 percent. Electronics and pharmaceutical exports remain exempt from the hike.
According to government sources, New Delhi is engaging with exporters to explore alternative markets for key products such as textiles, leather, gems, and jewellery. Financial assistance measures for affected industries are also under consideration.
The Commerce Ministry is expected to meet exporters from jewellery, chemicals, and other sectors later this week to discuss diversification strategies. Officials said consultations with stakeholders on expanding into new markets would be held within the next two to three days.
At the same time, the government is expediting its “Export Promotion Mission,” announced in the Union Budget 2025–26, to strengthen India’s trade resilience amid global disruptions. (Source: IANS)
