U.S. President Donald Trump has put pressure on India and many other countries by imposing import tariffs. The Indian government has started working in mission mode to counter these tariffs. In the next 100 days, big economic decisions will be taken that will directly impact the economy.
The government has already started detailed discussions on major economic issues. The focus areas include:
- reshaping trade relations with China,
- promoting e-commerce exports,
- giving more tax relief to startups,
- attracting foreign investors, and
- easing environmental rules for businesses.
High-level meeting chaired by PM Modi
On Sunday (17 August), Prime Minister Narendra Modi chaired a high-level meeting on reforms. It was attended by Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, Transport Minister Nitin Gadkari, Railway Minister Piyush Goyal (in dual role), and several senior officials.
PM Modi stressed that reforms must be carried out jointly and in a time-bound manner so that people can quickly feel the results. The meeting also decided that a clear plan will be made to implement these reforms, and progress will be monitored directly by the Prime Minister’s Office (PMO). A full list of reforms will be finalised and rolled out within the next 100 days.
Need to boost exports and reduce China dependence
In the meeting, our leader agreed that India must increase exports and attract more foreign investment to strengthen its position in the global economy. Today, India imports goods worth $40.66 billion from China but exports only $5.76 billion. This trade imbalance is not in India’s favour. To fix this, the government will work on boosting exports and reducing dependence on Chinese imports.
India’s Foreign Minister S. Jaishankar met Chinese Foreign Minister Wang Yi in New Delhi on August 18–19, 2025. China agreed to ease restrictions and resume supplies of fertilisers, rare-earth minerals, and tunnel-boring machines. It is critical for India’s farms, infrastructure, and industry. India has started diversifying its economic and diplomatic ties to eliminate the threat.
This trade gap is a concern, and the government is crafting strategies to reduce dependency on Chinese imports. Over-dependency on any nation may turn into a mistake during difficult times. This happened with European nations that were dependent on Russian oil and gas. After the Russia-Ukraine war started, European nations found it difficult to fulfil their domestic need for oil and gas.
Relief for Startups and Small Businesses
The government is preparing tax relief measures for startups and small industries. Environmental procedures are also likely to be simplified, so that investors can do business with fewer hurdles. Prime Minister Narendra Modi’s recently revealed tax cuts extended a gift to a domestic economy that still faces the teeth of U.S. tariffs.
The 100-Day Plan
Sources say the government has created a 100-day action plan. Government has prepared A list of 15 key areas, where reforms will be implemented quickly. PM Modi has set a target to complete these reforms by 2022, while keeping a long-term vision of making India a developed nation by 2047.
Steps to Attract New Investments
To attract more investors, the government will put more emphasis on Ease of Doing Business. This will include simplerrules, faster approval processes, and a more business-friendly environment. In an extensive Independence Day speech on Friday(15 August), Prime Minister Narendra Modi made a concerted push for self-reliance and proposed a spate of financial reforms.
Hence, the Modi Government knows the effect of this unusual geoeconomics shift and is taking all required measures to mitigate the economic risk posed by Trump’s tariffs. It will not only help India to sway away the unjustified tariffs but also prepare us to face future bullying.
