The BRICS TimesV Anantha Nageswaran says job losses from US tariffs are likely to be limited to export-focused units.
Prime Minister Narendra Modi’s chief economic advisor, V Anantha Nageswaran, has indicated that the 50 percent US tariffs on Indian goods, imposed by President Donald Trump, could be cushioned by strong domestic demand and increasing rural consumption.
Nageswaran noted that potential job losses would mainly affect export-oriented units that rely heavily on the US market.
“There will be offsetting factors. Job losses will be mostly restricted to those export units with high exposure to the US. Some businesses may find alternative markets, and others might adopt a medium- to long-term perspective, considering the tariff uncertainties temporary, and may choose to retain their workers,” he told ANI.
He added that the effects of Trump’s tariffs could be balanced by higher domestic demand, fueled by a strong monsoon and rising rural consumption, suggesting that any job losses may not be substantial.
US Tariffs on India
Earlier this month, President Trump imposed a 25 percent tariff on Indian goods, followed by an additional 25 percent on Russian oil imports amid the Ukraine conflict. The Trump administration has warned that India could face secondary tariffs if it continues purchasing Russian oil, with White House advisor Peter Navarro stating that India plays a key role in resolving the Ukraine crisis. India has called the tariffs “unjustified.”
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