n the midst of China’s ongoing military assistance to Pakistan during the May 2025 India-Pakistan confrontation, including intelligence collaboration with Islamabad, while India has purposefully limited its criticism of China to condemning just Pakistan. China has not completely de-escalated tensions despite a 2024 border agreement. Measures such as the unilateral renaming of Arunachal Pradesh territories and warnings about Indian ministers attending the Dalai Lama’s events have prompted measured responses from India, emphasizing non-interference and restraint.
Furthermore, strained relations have been exacerbated by Trump’s repeated public remarks that challenge India’s fundamental national sensitivities, such as taking credit for a ceasefire between India and Pakistan, offering to mediate the Kashmir dispute (which India considers an internal matter), and hosting the chief of Pakistan’s army. New Delhi took a more autonomous and practical stance as a result of these actions, which are seen as a disrespect for Indian sovereignty and diplomatic conventions.The 25% tax will have a major effect on Indian exports, affecting industries including automobiles, textiles, and medicines. It may also jeopardize India’s hopes for economic growth and market stability.
Additionally, it runs the danger of encouraging businesses that had previously moved their manufacturing from China to India to look into other Asian manufacturing hubs, which could jeopardize India’s growing industrial role in global supply chains.
Cars, textiles, and pharmaceuticals are just a few of the businesses that will be significantly impacted by the 25% levy on Indian exports. Additionally, it would endanger India’s aspirations for market stability and economic expansion.
It also poses the risk of incentivizing companies who had previously shifted their production from China to India to explore other Asian manufacturing centers, thereby endangering India’s expanding industrial role in global supply chains.
