Tariff

On September 25, 2025, U.S. President Donald Trump announced a 100% tariff on imported branded and patented pharmaceutical products, effective October 1, 2025. This policy primarily targets high-cost, branded drugs, which constitute a minority of Indian pharmaceutical exports to the U.S. While the immediate impact on Indian generic drug manufacturers appears limited, concerns persist regarding potential future tariffs on complex generics and biosimilars.

The Fare Fixation Committee (FFC) has submitted its much-anticipated report on the Bengaluru Metro fare structure, recommending a revised pricing framework designed to balance affordability for commuters with the financial sustainability of the network. The report, which will serve as a guiding document for the state government and Bangalore Metro Rail Corporation Limited (BMRCL), addresses long-standing debates over fare rationalization, operational viability, and passenger growth.

India’s Chief Economic Adviser (CEA) has presented a detailed analysis highlighting how tariff policies and Goods and Services Tax (GST) reforms are shaping the country’s economic trajectory. The report underscores that while tariff hikes provide short-term revenue protection, they may also dampen growth by affecting competitiveness and global integration. Simultaneously, GST reforms are positioned as a long-term stabilizer, broadening the tax base and simplifying compliance.

Bajaj Auto, one of India’s leading two-wheeler manufacturers, has announced a reduction in vehicle prices following the government’s decision to lower Goods and Services Tax (GST) rates on automobiles. By passing on the benefit directly to customers, the company has ensured that buyers across its product range enjoy more competitive pricing. This move comes at a time when affordability plays a decisive role in consumer choices, and it is expected to provide fresh momentum for the two-wheeler market, especially in rural and semi-urban regions where demand has been recovering steadily.

India’s exporters, facing a surge in US-imposed tariffs on key goods, are set to receive enhanced government support to sustain competitiveness in global markets. The measures aim to offset additional costs and encourage export growth despite trade barriers. Initiatives include financial incentives, streamlined procedures, and targeted assistance to sectors most affected by the tariffs. Analysts suggest these interventions could stabilize trade flows and safeguard India’s export revenues, while also fostering long-term resilience.

Gold prices surged to unprecedented levels as investors sought safe-haven assets amid rising concerns over international trade tariffs and weakening equity markets. Renewed fears of a global economic slowdown, coupled with elevated geopolitical tensions, have driven capital toward precious metals. Analysts highlight that sustained demand for gold reflects broader market uncertainty, with investors seeking to hedge against volatility in equities and currency fluctuations.

India’s tea industry faces renewed uncertainty as the United States considers a tariff hike on imported tea, a move that could undercut the competitiveness of one of the country’s most prized export commodities. While India ranks among the world’s top tea producers, its reliance on premium exports to Western markets makes it vulnerable to shifts in trade policy. Industry stakeholders warn that higher tariffs could squeeze profit margins, reduce demand, and open the door for competitors like Kenya and Sri Lanka to gain ground.

Chief Economic Adviser (CEA) V. Anantha Nageswaran has expressed confidence that India’s economy will sustain its growth momentum in FY26, even as the global trade environment faces fresh challenges from the United States’ proposed tariff hikes. While acknowledging the potential risks these measures could pose to global supply chains and export competitiveness, Nageswaran emphasized that India’s domestic demand, structural reforms, and investment-led growth cycle provide a strong buffer.

India’s textile sector, a cornerstone of the country’s export economy, is bracing for turbulence following the United States’ recent tariff measures. Industry leaders fear that the additional duties could dampen competitiveness, disrupt trade flows, and weigh on earnings at a time when global demand is already subdued. With textiles accounting for a significant share of India’s outbound shipments and providing employment to millions, the policy change poses both economic and social challenges.

Delhi Ex Chief Minister Arvind Kejriwal has called upon the central government to consider imposing higher tariffs on imports from the United States, citing concerns over widening trade imbalances and the need to safeguard domestic industries. His remarks come at a time when India’s trade relationship with the U.S. is under close scrutiny, particularly in light of tariff disputes, market access challenges, and the growing reliance on imported goods.