NEW DELHI (Diya TV) — Indian stocks plummeted Monday after President Trump said he would put broad tariffs on Indian imports, fueling concern of a trade war between the nations.
The benchmark Nifty 50 index dropped 3.55% on the opening, with the Nifty IT index, tracking the country’s leading information technology companies, down 5.53%. The decline reflects market discomfort with the newly imposed 26% flat tariff, which is aimed at a broad range of Indian goods shipping to the United States.
The US’s latest step prompted a swift response in New Delhi. India’s Commerce Ministry announced that it was “closely examining the implications of the various measures” and exploring “opportunities that might emerge as a consequence of this new development.”
Although India’s technology industry was hit hardest by investors’ jitters—largely because it relied so heavily on the U.S. market—India’s pharmaceuticals industry emerged relatively intact. The U.S. exempted imports of drugs from new tariffs, leaving intact the vital $8 billion trade pipeline for Indian pharma exports during the 2024 financial year.
Trump, speaking at the White House during the tariff announcement, emphasized his relationship with Indian Prime Minister Narendra Modi but accused India of unfair trade practices. “Prime Minister Modi is a great friend, but he hasn’t been treating us right,” Trump said.
The Times of India referred to the market’s response as a “bloodbath,” indicating the sense of shock among investors as well as analysts.
Market analysts now wait with bated breath for New Delhi’s reaction as India weighs possible retaliatory actions. Experts warn that prolonged trade tension can destabilize global supply chains and reduce investor sentiment.
