Donald Trump's 50% tariffs on India take effect — Here are views from industry and market experts

The 25% additional tariffs threatened by the Donald Trump Administration on Indian imports in to the US, have taken effect from 09:31 AM IST and 12:01 AM Eastern Time on Wednesday, August 27.

The Donald Trump Administration had earlier announced a 25% tariff levy on Indian imports as a deal between the two countries could not be reached ahead of the August 1 deadline. An additional 25% levy was threatened when Trump accused India of buying Russian oil and thereby fuelling the war in Ukraine.

Among sectors most likely to be hit, include textiles, sea food, and gems and jewellery.

Kirit Bhansali, Chairman of the Gems & Jewellery Export Promotion Council (GJEPC) told CNBC-TV18 on Tuesday, that the industry cannot work with a 50% tariff. 70% of jewellery exports happen from the Mumbai SEEPZ and that he will be meeting with the Chief Ministers of Gujarat, Maharashtra and Uttar Pradesh for providing relief to labour engaged in the industry.

Devansh Shah of Venus Jewels also mentioned that 30% to 40% of their exports are to the us markets and hey will not be able to limit the impact to just them. He added that while they have already begun exploring other markets, shifting manufacturing outside India is a long-term call.

India's equity markets, which are shut on Wednesday on the occasion of Ganesh Chaturthi, sold-off sharply on Tuesday, ahead of the impending tariff deadline. The Nifty 50 benchmark index fell over 250 points to its lowest level since May, and also closed below key support levels.

Nilesh Shah of Kotak Mahindra AMC told CNBC-TV18 on Tuesday that these 50% tariffs are not a death knell for the economy and that the government will have to step in to provide credit or other supportive measures for the affected sectors.

He also spoke about the selling pressure from foreign institutions, who cite expensive valuations are a key reason behind their selling, stating that India deserves the premium valuation due to better governance and better earnings growth potential.

Mark Mobius of Mobius Capital partners told CNBC that India as a market will do well over the long-term as the domestic market is in very good shape. He added that India will be "okay", despite pressure emerging from tariffs, which could impact the country's GDP by 0.5% to 0.75%.

(Wit Inputs From Parikshit Luthra and Manisha Gupta.)