Core Points - The U.S. has implemented a 25% punitive tariff on goods imported from India, raising the total tariff rate on Indian products to 50% [1][5] - The Indian government is taking measures to support farmers and small business owners in response to the tariff pressures, while also establishing non-negotiable "red lines" in negotiations with the U.S. [1][17] Tariff Impact - Approximately 55% of Indian products exported to the U.S. will be at a competitive disadvantage due to the increased tariffs [10] - The textile industry and seafood exporters are particularly affected, with reports of production halts and supply chain disruptions [10][14] Affected Sectors - Small and medium enterprises, which account for 45% of India's total exports, are significantly impacted by the U.S. tariff policy [14] - The gems and jewelry sector, with exports to the U.S. valued at around $10 billion, is among the most vulnerable [14][16] Government Response - The Indian government is focusing on enhancing support for small farmers, livestock breeders, and fishermen, and has identified 100 agricultural regions for additional assistance [17] - Financial aid will be provided to exporters affected by the tariffs, and there is encouragement to diversify exports to markets in Latin America and the Middle East [17] Ongoing Negotiations - Trade negotiations between India and the U.S. are still ongoing, with Indian officials asserting that the negative impacts on the economy will not be permanent [17] - The Indian government has set clear priorities regarding the protection of farmers and small businesses, indicating a firm stance in negotiations [17]