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Rajeev Desai / ARTICLE

After Trump declared his Tariff for India of 25% + Penalty = 35%. Market I thought will tank 2000+ point and maybe not close less then 1200 points down. But market after initial down, and closed just only 300 points down, is showing that, market believe 35% tariff is non event for India. Market is the barometer of economy. So if market is not much perturbed with Trump Tariff, means, we also need to take the clue and shouldn't try to see things to the extent of becoming Scared!! No Overthinking Please!! I have some times back written , here or at X or both, that India is a domestic Consumption economy and hence India is not much bothered by USA tariffs.. and if market is ignoring tariff, why we should? I read that this tariff is for goods and not services. So outsource IT services, Clinical trials, R&D in Pharma for US MNC, etc do not come in tariff bracket. So if we take out services amt, from total of $120 Bn export to USA every year, what will remain? And hence market is not taking any negative on Trump Tariff!! $120 bn export to USA is also not big considering our $4 tr economy. And this tariff will make out corporate find new ways to export somewhere else.

Published Jul 31, 2025Updated Jul 31, 20253 min read
After Trump declared his Tariff for India of 25% + Penalty = 35%. Market I thought will tank 2000+ point and maybe not close less then 1200 points down. But market after initial down, and closed just only 300 points down, is showing that, market believe 35% tariff is non event for India. Market is the barometer of economy. So if market is not much perturbed with Trump Tariff, means, we also need to take the clue and shouldn't try to see things to the extent of becoming Scared!! No Overthinking Please!! I have some times back written , here or at X or both, that India is a domestic Consumption economy and hence India is not much bothered by USA tariffs.. and if market is ignoring tariff, why we should? I read that this tariff is for goods and not services. So outsource IT services, Clinical trials, R&D in Pharma for US MNC, etc do not come in tariff bracket. So if we take out services amt, from total of $120 Bn export to USA every year, what will remain? And hence market is not taking any negative on Trump Tariff!! $120 bn export to USA is also not big considering our $4 tr economy. And this tariff will make out corporate find new ways to export somewhere else.