50% tariff for 50% Trump’s Donald in India begins when the Prime Minister calls on independence

Donald Trump’s 50% favorable tariffs in India became a few weeks after the US president issued an executive order that got into an Asian country with additional 25% for the purchase of Russian oil and weapons.

This makes India – one of the strongest US partners in the Indo -Tsikhakan region – among countries that pay the highest tariffs in the world. This can strike exports and growth in the fifth largest economy in the world, given that the US has been the largest trading partner in India until recently.

The tariff failure has sent Indian government to fire fighting.

Earlier this month, Indian Prime Minister Narendra Modi promised.

He said that the gift was struck in the form of “massive taxation” went to the common man and the millions of small businesses who are holding the third largest Asia economy.

Having carried a bright saffron turban and turning to the crowd of viewers with the Val Red Fortress Delhi during the Independence Day festivities, Modi also made a cohesive cry for independence, calling on small owners of shops and enterprises to put “Swadeshi” or “made in India” outside their stores.

“We must become independent – not desperate, but proud,” he said. “Economic selfishness increases all over the world, and we should not sit and cry about our difficulties, we must rise higher and not allow others to keep us in our paws.”

He has since repeated these comments at least in the other two public addresses this week.

For many observations, this is clearly aimed at countering US President Donald Trump for 50% tariff rate in India. This will be broken Millions of livelihood Across the country governed by export industries, which supply everything from clothing to diamonds and shrimp to US consumers.

Among the blow, the Modi message to his countrymen was loud and clear – to do in India and spent in India.

The first turned out to be increasingly complex, and the share of production within the gross domestic product of India (GDP) stagnated by 15%, despite the fact that its government has undergoing subsidies and production incentives over the years.

But by pushing tax reforms that immediately brought more money into the hands of people, the government can help soften some of the impact, experts say.

And so, after a $ 12 billion income tax announced in the budget earlier this year, MODI is now striving for major repairs of indirect tax architecture – reduced and simplification Tax on goods and services (GST).

GST, which was presented eight years ago, replaced the indirect tax marsh to reduce the conservation and cost of doing business.

But experts say it is Too many thresholds and exceptions, making the system extremely complicated. They have repeatedly called for updating him.

Now Modi has clearly promised that when the Indian Finance Ministry outlined the proposal on the simplified GST bunk system.

“In conjunction with the decline in income tax since April 2025 … the GST rate reforms (probably worth $ 20 billion; £ 14.7 billion) must provide a significant impetus to consumption,” said analysts from the US brokerage house.

Private consumption is the basis of India’s economy, which contributes to almost 60% of the country’s GDP. While rural costs – with the support of the bumper’s crop – remained strong, demand for goods and services in cities continues to slow down from the reduction of wages and job cuts In large fields, you like the pandemia.

Modi’s “fiscal stimulus” should help ensure consumption recovery, Morgan Stanley’s investment bank reports. This will push the GDP and drag the inflation down.

“This is especially important against the background of the wind from the current global geopolitical tension and adverse global tariff events that can worsen external demand,” said Morgan Stanley.

Among the sectors that are most likely to use tax benefits are consumers such as scooters, small machines, clothing and even things like cement that goes to the products where the demand usually gains the pace around.

While the specifics are unknown, most analysts believe that the loss of income by smaller GST will be offset by the collections of excess collections and higher than in the budget dividend of the Central Bank of India.

According to the Swiss Investment Bank UBS, the GST cuts will also have a greater “multiplier effect” than Pre -decreased corporate and income tax MODI is carried out as they “directly affect the consumption at the purchase site, which can lead to higher consumer costs.”

MODI tax materials may also increase the likelihood of further reduction in the interest rate of the Central Bank of India, which has already reduced the rates by 1% in the last few months – what can push more lending, analysts report.

This, along with raising the salaries of about half a million civil servants who hit the next year, will help, they say.

Indian stock markets have encouraged these ads. And despite the panic caused by trading uncertainty, at the beginning of this month, India also received a rare modernization of a sovereign rating with S&P Global, after breaking 18 years. The sovereign rating measures how risky borrows the government or invest in the country.

This is significantly, because it can reduce government borrowing and improve foreign investment flows to the country.

But even when Modi penetrates the long delay, India’s growth prospects slowed down from 8% of the levels observed several years ago, and its external crisis does not show signs of infusion.

A Word of Word Delhi and Washington, especially for buying the energy of the latter in Russia, have only intensified and trade talks, which were supposed to begin earlier this week, were canceled.

Meanwhile, at 50%tariffs on India are similar to Sanction on trading Between the biggest and most rapidly developing economy in the world, say, experts are a scenario that would be incredible even a few months ago.

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