The Indian government had already anticipated the impact of the revised U.S. tariff rules set to be implemented from April 9, 2025. A high-level committee was formed last week, led by the Commerce Ministry, involving four key ministries to assess and respond to the evolving trade situation. While India’s export dependency on the U.S. is relatively limited, the government has held several consultations with investors to understand market sentiment and preparedness.Experts say while Monday's market plunge — a fall of over 2000 points — has raised concerns, it's driven more by sentiment than substance. Many investors hoped the impact of new tariffs would be phased or mild. However, the sharp reaction triggered frustration and uncertainty. Analysts advise monitoring the market for another week before drawing conclusions.With China already announcing retaliatory tariffs of 34%, India is taking a cautious approach due to its strategic ties with the U.S. Policymakers are now exploring how this "crisis" can be converted into an opportunity through initiatives like Make in India, encouraging Indian companies to scale exports to alternative markets.This situation, while turbulent, could potentially boost Indian manufacturing and shift global supply chains in India's favor.
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NewsTranscript
00:00I think it is important to tell the viewers that the Indian government had made a report on all these circumstances 8 months ago.
00:06And because of this, these changed tariff rules have been in place since 9th April.
00:13Today is 7th April.
00:15And last week, the Indian government had formed a high-level committee,
00:20in which four different ministries were included.
00:23Its leadership was entrusted to the Commerce Ministry,
00:29to analyse the situation and find out how to deal with it.
00:34And to come up with a guideline or a framework.
00:37The biggest impact and the biggest blow, if I may use this word,
00:44is on the small investors.
00:47Who are they after?
00:49It is the small investors, who go to the share market for small savings and small profits.
00:57Experts are advising on this.
01:00We will take you to them once again.
01:02Namrata is with us. Namrata.
01:09Experts say that if the market is falling, then prefer gold.
01:16And gold prices are also increasing.
01:18Whenever there is a loss in the market, the price of gold increases.
01:21Because gold is considered a safe investment.
01:23The situation in India is good.
01:25India is not completely dependent on automobiles, electronics and agro products.
01:31India does not import so many products to the US.
01:33There are many countries that import other products from India.
01:38India's situation cannot be that bad, if it is properly managed.
01:44The Indian government had also formed a committee.
01:46They had already had a lot of meetings with the investors,
01:49in which their opinions were taken.
01:51Experts have been keeping an eye on the situation of the market,
01:55after the implementation of the tax relief scheme on 9th April.
01:57The market has fallen.
01:59Experts say that we will have to wait for another week.
02:02But the most shocking thing is that the investors had hoped that the market would not have such an effect immediately after the tariff.
02:09So maybe this would be a smooth process.
02:11We should not get such an immediate blow.
02:13But as soon as the numbers fell below 2000 on Monday,
02:17the investors were frustrated.
02:21In such a situation, when the investors are worried about one thing,
02:25they go to the other side.
02:26The price of other products and the share of other products is going to increase.
02:31In such a situation, the investors are looking at the Indian government.
02:36They are asking the government to talk on their side.
02:38Because China has adopted a different approach.
02:40They have said that they will also invest 34% of their products.
02:43India cannot do that.
02:45India's relationship with China is different from that of America.
02:50India has already kept America in a soft zone.
02:52So India will also take an initiative in the same way.
02:56Under which the situation of the market will be cleared.
03:03But for now, it is important to understand that if there is such a problem,
03:07then how to get out of it.
03:09Because India's situation is much better than other countries.
03:13Experts and investors are trying to explain this.
03:18How to take advantage of India's freedom compared to other countries.
03:23To take advantage of this, the government will have to make a policy.
03:27There will be some changes in the policy of Make in India.
03:30Investors are waiting for all these things.
03:33Now that the market has fallen,
03:36they want the Indian government to take a big decision.
03:40To take an initiative and talk to America.
03:44So that the situation can be normalised.
03:46But I told you that...
03:47Listening to you, I think it can be said that this fall,
03:52that impact, because compared to other countries,
03:55the tariff on India has been reduced by America.
03:58Secondly, they are assuming that this can be an opportunity for Indian companies.
04:04They can increase their exports to other countries.
04:08Indian companies have an opportunity here.
04:11So for now, it will be too soon to say anything.
04:14And in a way, this initial fall that we are seeing in the market today,
04:18or we saw in the market last week,
04:20in a way, because it is believed that the market runs on sentiment.
04:24So because of this sentiment,
04:26and the kind of sentiment that is in the city markets all over the world,
04:29that negative sentiment,
04:31this is the impact that is being felt more in the Indian city market.
04:35Namrata.
04:39Yes, absolutely.
04:40Because before the tariff came,
04:42the atmosphere around the tariff was very negative.
04:46After that, when the tariff came,
04:48we did not see the same situation in the beginning.
04:50But as China is reacting,
04:52the rest of the countries are reacting,
04:54it is getting worse.