The tariff shock is already feeding into India’s domestic politics, raising questions about Prime Minister Narendra Modi’s standing.
Export lobbies, including the Apparel Export Promotion Council and the Gems and Jewellery Export Promotion Council, have warned of an “earthquake” in their sectors, with millions of jobs at risk.
Rising unemployment in urban centers could fuel discontent, particularly among younger workers and small exporters. Modi has urged citizens to “buy Indian goods” and is preparing tax cuts and relief packages, but many fear these measures will not offset export losses.
While the tariffs are unlikely to topple his government immediately, prolonged joblessness and shrinking markets could weaken his political dominance and erode public confidence over time.