- By Aditya Jha
- Sun, 31 Aug 2025 03:00 PM (IST)
- Source:JND
Trump Tariff: Prime Minister Narendra Modi’s chief economic advisor V Anantha Nageswaran on Sunday asserted that US President Donald Trump's tariffs' impact on the Indian economy can be minimised by strategic economic steps. Nageswaran stated that though the 50 per cent tariff will have its impact, it can be brought down by strong domestic demand and consumption of products manufactured by Indian companies. While he accepted that the tariff will affect the firms highly dependent on the United States, Nageswaran emphasised that those companies can look for other options for their business.
"There will be offsetting effects also. Yes, job loss will be contained to those export-oriented units that are very highly exposed to the United States. Second, some of them will be able to find alternative markets, and some of them may also decide to take a medium to long-term view that if the ongoing uncertainties related to the tariffs are going to be contained and temporary, they may choose to look beyond that and not necessarily let go of their workers,” Nageswaran was quoted as saying by ANI.
Nageswaran further stated that higher domestic demand will benefit the economy in the long term, adding that it will also compensate for the loss due to tariffs. He emphasised that only certain sectors will witness job losses, adding that agriculture and rural demand will increase in the upcoming months.
“But apart from that, I would also like to point out to you that there could be compensation coming from higher domestic demand. We have had a very good monsoon season. Agriculture and rural demand will be rising... So it is not necessary that job losses, if they happen, will be of a significant nature," Nageswaran emphasised.
Earlier last month, Donald Trump announced a 50 per cent tariff on Indian goods, affecting several sectors, especially IT and electronics.
