Indian opposition parties criticised the government on Thursday, describing US President Donald Trump’s threat of a 25 per cent tariff as a diplomatic failure for New Delhi, while the rupee currency tumbled and equity indexes slid in response to the news.

The 25pc rate would single out India more harshly than other major trading partners, and threatens to unravel months of talks, undermining one of Washington’s strategic partners in the region, viewed as a counterbalance to China.

Trump said the tariff on imports from India would start from Friday, in addition to an unspecified penalty for Russian dealings and involvement in the BRICS grouping of nations.

In response, the government of Prime Minister Narendra Modi said it was studying the implications of Trump’s remarks and was dedicated to securing a fair trade deal.

“This development reflects a broader collapse of foreign policy under the Modi government,” a lawmaker of the main opposition Congress party said in a notice to the lower house of parliament, asking for a discussion on the matter.

The debate would focus on the “government’s economic and diplomatic failure in preventing the imposition........

© Dawn Business