Tensions between the U.S. and India over trade are starting to affect India’s economy and markets. The main issue is that India continues to buy oil from Russia, and U.S. President Trump is unhappy about it. He has already put a 25% tariff (extra tax) on some Indian goods and is threatening more. Because of this, India’s stock markets, Sensex and Nifty went slightly down. Investors are worried that Indian products will become more expensive in the U.S. hurting exports. Sectors like spices, medicines, textiles, and chemicals are expected to be affected the most.
The Indian rupee has also dropped in value against the U.S. dollar, but the Reserve Bank of India likely stepped in to stop it from falling too much. Exporters and businesses are now feeling uncertain, and some foreign investors may pull back if the situation gets worse. Overall, the trade conflict is making the markets nervous and may affect India’s economy if it continues. It’s not just about oil, it’s about how India and the U.S. are handling their growing differences on trade and global issues.
