The Indian government estimates the tariffs will impact $48.2 billion worth of exports. Officials have warned the new duties could make shipments to the U.S. commercially unviable, triggering job losses and slower economic growth.

The 50 per cent tariff includes a 25 per cent penalty imposed by the US. It will impact small and micro sector in India, but there are ways out.

President Donald Trump sought to punish India over its purchase of Russian oil, a move that has upended the two countries’ once-warm diplomatic and trade ties.