India’s firm and calibrated response to the US imposition of 50 per cent tariffs on its exports in August 2025 has been a masterclass in geopolitical strategy, transforming a potential economic setback into a platform for global influence. Under Prime Minister Narendra Modi’s leadership, India has demonstrated restraint, resilience, and diplomatic finesse, refusing to yield to pressure while forging new partnerships and keeping channels open for reconciliation with the United States. This approach has not only cushioned India against economic fallout but also elevated its stature as a pivotal player in a multipolar world.

When the US announced a 25 per cent baseline tariff, followed by an additional 25 per cent tied to India’s purchase of Russian oil, it aimed to guilt-trap India over its robust energy alliance with Russia. Rather than reacting impulsively, India chose a path of strategic restraint. Foreign Minister S Jaishankar deftly countered US claims that India’s oil purchases fuelled Russia’s war machine, pointing out that the US had previously encouraged such imports to stabilize global energy markets.

This fact-based rebuttal exposed inconsistencies in US policy, particularly as China, the largest buyer of Russian oil, was exempt from similar sanctions. India’s economic resilience underpinned this composure. With $702 billion in foreign exchange reserves and a domestic demand-driven economy, India is well-equipped to absorb the projected 0.3–0.4 per cent GDP loss for FY2026, as estimated by Care Ratings. The exemption of India’s services sector, including pharmaceuticals, from tariffs further softened the blow.

Instead of retaliating, India used the crisis to diversify its geopolitical and economic alignments, showcasing a maturity that few nations have displayed under such pressure.

The tariff crisis spurred India to breathe new life into the seemingly dormant Russia-India-China (RIC) axis within the Brics framework, reinforcing its strategic autonomy. This move was not about........

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