A $ 60 billion hit! Jefferies decodes the effects of US tariffs on Indian economy

Global transmission attempt Jefferies has recently illuminated India’s economic challenges that are increasing in US trade tensions. The central focus is on setting up 50 % of the US tariff in India exports, except for drugs that are predicted to have a significant impact on the different fields of the Indian economy.

Tariffs, which can lead to an estimated $ 55 to $ 60 billion in US dollar, are mainly labor -intensive industries such as textiles, shoes, jewelry and pearls. These industries are important for employment in India, which emphasizes the broader financial consequences of these trading barriers, the transmission said. The prescription of the tariffs is linked to the « personal peak » of the US President that New Delhi’s discussions According to discussions, there was no role between India and Pakistan, it said.

Jefferies said India’s refusal to accept the lack of third parties in his conflict with Pakistan, which is described as a « red line, » emphasizes the complexity of geopolitical issues that affect economic policy. This attitude that maintains national sovereignty is significant financial costs. In addition, Jefferies emphasizes that nearly 25 crore farmers and related workers depend on agriculture, which accounts for nearly 40 % of the workforce, which emphasizes the sensitivity of the field of agriculture to import.

Before the recent conflict, Pakistan, India and the United States were reported to be close to the completion of the trade agreement. However, killing the Indian tourist in Kashmir disturbed these negotiations, which led to the current trade deadline. This Indian capital refers to an event sequence in Washington as a « conceptual vacuum » has continued to complicate the economic landscape, Jefferies said.

Global transmission stated that tariffs also hit India’s constant buying of Russian oil, which has become a controversial issue in the midst of constant discussions in the Ukrainian conflict. The situation emphasizes how international diplomacy and trade policy are often intertwined. Jefferies stated that these tensions are not only economic, but also strategic because they potentially drive closer to China, a significant trading partner.

India’s imports from China are still significant and the annual import from China was $ 118 billion, which is 16 % of total imports and registered 13 % from the previous year by July 2025. These figures describe India’s dependence on Chinese goods, such as solar panels that are vital to their energy needs.

From the point of view of market dynamics, India navigates pressure on the maintenance of trade relations with the United States by managing its strategic partnership with China. The broader impact on India’s economic policy is significant and their trade priorities and allies can change again.

The Jefferies analysis emphasizes the challenges that India faces by balancing its economic and strategic interests in the midst of the transition of global alliance. The transmission suggests that in these challenges navigation requires careful diplomatic and financial guidance to safeguard the Indian growth path in the coming years.