How US tariff crisis presents a critical juncture for India to achieve true strategic and economic autonomy

India has every reason to be angered by US President Donald Trump’s bullying via tariffs, but what matters is how New Delhi converts this crisis into momentum for further reforms, a report said on Wednesday.

According to the report published in India Narrative, the “path forward lies not in lamenting betrayal but in hardening independence”. “By accelerating domestic capacity-building, diversifying supply chains, and unleashing innovation, India can transform strategic autonomy from a vulnerable aspiration into an unshakable reality,” the article noted.

According to a latest Crisil Intelligence report, to mitigate the impact from the US tariffs, India can increase exports to other countries as well as leverage the benefits of the recently concluded trade deal with the UK and a potential deal with the European Union (EU).

The imposition of higher tariffs by the US will affect MSMEs, which account for as much as 45 per cent of India’s total exports, according to the report by Crisil Intelligence.

Currently, the US levies a 25 per cent tariff on Indian goods. However, it has imposed an additional 25 per cent tariff that will take effect from August 27, bringing the total tariff on Indian products to a substantial 50 per cent.

According to the India Narrative report, “India cannot count on special dispensations from Washington, nor on appeals to fairness”.

“It must prepare for an environment where every nation, ally or adversary, will leverage trade and technology as instruments of pressure,” it added.

India is a world leader in digital payments. The Unified Payments Interface (UPI) has transformed the financial landscape by reducing reliance on Visa and Mastercard.

UPI’s integration with RuPay accounts for nearly 30 per cent of credit card transactions this year, up from 10 per cent just last year.

“UPI ensures that India controls its payments infrastructure, retains critical data, and promotes financial inclusion on its own terms. It is proof that when India builds indigenous platforms, it can resist external pressure,” argued the report.

The time is ripe for India to replicate the UPI model across other critical sectors — pursuing semiconductor self-sufficiency, building sovereign AI platforms, developing indigenous defence technologies, and securing energy independence.

According to the report, Prime Minister Narendra Modi has gestured in this direction, convening a high-level meeting on “next-generation reforms” and promising a simplification of the Goods and Services Tax.

“But incremental reform will not suffice. To withstand the coercive tactics of great powers, India needs a generational leap in capacity,” the article emphasised.

 

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[Mc Addy]

This is no critical juncture, we must forget USA and get ready to trade without it . What it don't need, it sanctioned, so don't send it anything at all, so it will see price hike ,of what it needs and come to senses . Exports imports are need based and what's cheaper or better is imported ,rest is all trash , so get to work ,stop troubling people as what's in place , will intesify ,that is the tariffs, we got cold war era , reserved for enemy of state type sactions ,covered in velvet words called Terriffs . Leave all this USA now.we are now the number 3 enemy of USA , Iran , then Russia and then us as we are not longer popular in that country.