Hyderabad, Aug. 7 -- India's hopes for reduced export tariffs to the United States were dashed on Wednesday when the Trump administration announced a 25% levy and an unspecified penalty for buying arms and crude oil from Russia. The Modi government is responding cautiously, as the full impact of these penalties remains unclear.

Concerns have been raised about the impact of India's exports on the economy and stock market. On July 30, Trump announced a 25% tariff on imports from India, stating, "While India is our friend, we have done little business with them because their tariffs are among the highest globally, and they have challenging non-tariff trade barriers."

Experts warn that the 25% tariffs could reduce India's growth in 2025-26,...