Trump’s proposed tariffs on Indian goods will have “no alarming impact” on the Indian economy, top government sources told Business Today, insisting that farmer, dairy, and MSME interests remain non-negotiable.
Despite the looming 25% tariff on select Indian exports, senior officials say the worst-case GDP impact would be less than 0.2%. “Most goods exported to the U.S. won’t be affected,” a top source said, emphasizing that “exports may fall slightly, but there is no reason for alarm.”
According to officials familiar with the matter, India will not compromise on sensitive sectors like agriculture, dairy, and genetically modified crops. “There is no question of allowing GM crop imports or compromising religious sentiments around non-veg milk and beef,” one source said.
India’s MSME sector is also a red line. “Protecting small businesses is critical. We will not allow any adverse impact,” another official noted.
The government remains firm that it will not yield to external pressure, even as bilateral trade agreement (BTA) talks with the U.S. continue. “Negotiations are moving in the right direction,” a source said, hinting that tariff reviews could follow once the deal is finalized.
Despite tariff tensions, India is on track to become a $5.5 trillion economy within three to four years, according to the government’s current economic outlook.
“The bottom line is clear,” the source added. “India’s interests come first—there will be no compromise.”
