Economic duties imposed by the U.S. spark controversy over India's economic future: "Mind your own business"

India is taking a multi-faceted approach to reduce its vulnerability in international trade and assert its position as a more assertive global player following punitive tariffs imposed by the United States. The core elements of this strategy include export diversification, import substitution, enhanced competitiveness, targeted sectoral support, and strategic international partnerships.

Key details of India’s approach are:

Export Diversification: India is expanding its export markets beyond traditional partners, focusing especially on the Middle East and Africa, which already account for 90% of India’s exports. This reduces dependence on markets vulnerable to politically motivated trade barriers like U.S. tariffs.
Export Promotion Mission: A ₹2,250 crore Export Promotion Mission announced in the 2025–26 Union Budget is being expedited. This mission aims to provide sector-specific subsidies and easier credit access to micro, small, and medium enterprises (MSMEs) hit hardest by tariffs. This includes reopening Production-Linked Incentive (PLI) schemes for sectors like textiles in response to industry needs.
Enhancing Competitiveness and Import Substitution: Efforts are underway to improve domestic production capabilities, reduce import dependence, and support strategic sectors to withstand external shocks. This is part of a comprehensive commerce ministry plan to boost resilience against tariff impacts.
Energy Diversification and Security: India is strategically diversifying its energy imports, balancing Russian crude—a discounted yet geopolitically sensitive source—with increased imports from the U.S., Iraq, Saudi Arabia, and the UAE. Simultaneously, India is investing $2.09 billion in refining capacity expansions and green hydrogen projects to stabilize margins and secure long-term energy needs amid geopolitical volatility.
Pharmaceutical Sector Strategy: India is proposing tariff exemptions, export regulation relaxations, and incentives to enable Indian pharmaceutical companies to ramp up U.S.-based manufacturing. This includes plans to allow generic drug imports to the U.S. at steep discounts post patent expiry, aligning with U.S. cost reduction goals while mitigating tariff threats. Indian firms are also expanding supply chains and manufacturing footprints in North America, enhancing resilience and market continuity.
Non-Tariff Measures and Bilateral Negotiations: India is exploring adaptations of quality control orders (QCOs) to protect domestic manufacturing while facilitating trade with the U.S. Discussions on these non-tariff barriers aim to support bilateral trade growth and achieve “Mission 500”—doubling bilateral trade to $500 billion by 2030. Potential agreements around tariffs, digital trade, LNG, and defense procurement are also in progress to ease tensions and create a more stable trade framework.
Supporting Domestic Manufacturing: Sectors like mobile phone manufacturing and exports, which boomed dramatically over the past decade, face challenges from tariffs but remain pivotal. India’s “Vocal for Local” strategy promotes domestic production to reduce external dependencies, thereby increasing resilience in export-oriented manufacturing.

The debate over India's role on the world stage is being reignited due to the country's growing economic power and potential influence. Deepinder Goyal, co-founder of Zomato, called for India to become the world's largest and most unapologetic superpower in various sectors, including economy, technology, defense, and ambition. The social media post by Deepinder Goyal went viral, sparking a new debate about India's role on the world stage as it prepares to become the third-largest economy on Earth by 2028, according to International Monetary Fund estimates. The debate is centered around India's ambition to become a dominant force in various sectors, including economy, technology, defense, and more. The debate is focusing on the need for India to be unapologetic in its pursuit of global power and influence. The Trump administration announced an additional 25% tariff on Indian imports, effective from August 27. These tariffs serve as a reminder of India's place in the global economy and have provoked widespread consternation across India's business community. The debate is taking place as India is poised to become one of the largest economies in the world.