
On April 2nd, the Trump administration is expected to unveil a fresh wave of tariffs targeting nations it accuses of maintaining unfair trade barriers against the United States. India, identified among the “Dirty 15” — a list of countries with high duties on American goods — is under particular scrutiny. Tariffs on U.S.-made automobiles, Harley-Davidson motorcycles, wines, spirits, and agricultural exports have emerged as focal points in this escalating trade standoff.
For Indian exporters, this is more than just diplomatic posturing — it’s an inflection point. At Obeetee, a century-old Indian manufacturer of handcrafted carpets and furniture, our business has been shaped around the American consumer. Our design sensibilities, compliance frameworks, and supply chains are geared to the demands of the U.S. market. A sudden tariff shock could unravel decades of collaboration — disrupting not just commerce, but communities of artisans across Mirzapur, Panipat, and Bhadohi.
The stakes are considerable. In 2023, India exported goods and services worth $78.5 billion to the U.S., making it our largest trading partner and accounting for over 18% of total exports. A rupture in this corridor would have cascading effects on multiple sectors — from textiles and pharmaceuticals to IT services and auto components.
But rather than respond with defensiveness or denial, India must meet this moment with strategic clarity and reformist resolve. History offers a precedent. In 1991, faced with a balance of payments crisis and dwindling foreign reserves, India responded not with protectionism but with liberalisation. The result: three decades of sustained growth, hundreds of millions lifted out of poverty, and an economy that is now among the largest in the world.
And yet, India remains underrepresented in global trade. In 2023, its share of global merchandise exports was just 1.8%, dwarfed by China’s 15.4% (WTO). Despite its scale and dynamism, India is not yet a central node in global value chains. The present tariff threat may be the push we need to change that.
By seizing this moment, India can advance a new generation of Free Trade Agreements — with the U.S., the UK, and the EU — crafted with precision and pragmatism. These FTAs can reduce tariff and non-tariff barriers, align regulatory standards, and unlock access to advanced markets. In doing so, they can catalyse Indian manufacturing, boost competitiveness in services, and insulate the economy against the twin headwinds of Chinese overcapacity and disruptive AI.
India’s economic trajectory has already benefited from transformative domestic reforms such as the Insolvency and Bankruptcy Code and the Goods and Services Tax, both of which have improved the ease of doing business and increased formalisation.
To be clear, not every industry will benefit equally. Firms long shielded by tariffs may require time-bound support to adapt. But the overall gains — greater foreign investment, deeper integration into global supply chains, and enhanced resilience — are unequivocal.
This could be India’s second liberalisation moment. Not born of financial crisis, but of strategic necessity. If 1991 was about rescuing the economy, 2025 must be about reimagining it. In turning friction into a catalyst, India has the opportunity to signal its intent — to itself and the world — that it is ready not just to trade, but to lead.
The writer is managing director of Luxmi Group, a 20 million kg tea producer with estates across Assam, West Bengal, Tripura, and Rwanda, and Chairman of Obeetee. Under Luxmi, he oversees iconic brands like Makaibari, acquired in 2013. He is also the founder of UK-based furniture brand Manor and Mews, and a director at Luxmi Township, which develops inclusive urban spaces. A former consultant at Booz Allen Hamilton in New York, Rudra holds an MBA from Columbia Business School and a diploma in Business Laws from NUJS. He teaches economics at IMI and is a guest faculty at IIM Calcutta.