
In 2025, India navigated significant US tariffs on exports by diversifying trade to Europe, Southeast Asia, Africa, and the Middle East, supported by preferential trade agreements. The Indian government provided fiscal support, including interest subventions and duty drawbacks, to cushion economic impact, especially for SMEs. Simultaneously, initiatives like 'Make in India' and PLI schemes were accelerated to boost domestic production, ultimately strengthening India's global standing despite the trade challenge.