BBC:
US President Donald Trump’s 50% tariffs on India came into effect on 27 August. So far, rather than retaliating, India has put forth a carefully orchestrated geopolitical response to signal its displeasure to the US.
There’s been the much publicised attempt at a rapprochement with China, and striking images of Prime Minister Narendra Modi sharing a limousine ride with Russian President Vladimir Putin splashed across the media from the sidelines of a security forum meeting in Tianjin.
Domestically, Modi has announced some help for struggling exporters and there are tax cuts on the anvil to mitigate the impact on exports.
But Delhi finds itself in an unenviable spot. The tariff impasse with its largest trading partner has continued far longer than anticipated, trade negotiations with Washington have come to a halt and the already damaged ties are fraying further with daily admonishments from US officials.
The repercussions are significant.
Prolonged 50% tariffs could shave off as much as 0.8% of India’s GDP, according to some estimates.
India’s exports to the US could drop by as much as $35bn (£26.1bn) this financial year and put hundreds of thousands of jobs across key industries like textiles, gems and jewellery and leather at risk.
Pushed to the brink, the question some are asking is whether Delhi will retaliate? And if not, what are its least damaging options?
