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How India Should Counter Trump

Jindal School of International Affairs

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Indian Economists Across the Spectrum Have Provided a Strategy For Long: https://thediplomat.com/2025/04/how-india-should-respond-to-trumps-tariff-threat/
 
………….Consider the auto industry, even the cheapest US cars from Chevrolet and Ford are priced at $ 23,000 in the US market (average price of an automobile is $49,000). Considering average tax on cars is 5% in the US (its 0% in some US states) while in India GST plus road tax etc. totals 43%, the on road price in India would be at least $32,000 without transportation charges from the US to India.
 
Once one adds up all of that in Indian rupees the cheapest American cars would cost in the range of 30 lakh rupees, on road. An equivalent Indian car would cost no more than 10 to 15 lakhs. The same calculations for the average US car would result in an on road price of 45 lakh rupees whereas the average price of an Indian car is 11.5 lakhs. The Indian consumer simply doesn’t have the capacity to purchase American manufactured cars, and this is true across the range of manufactured products,………..

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Published Date 10-04-2025
Category News
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