Facing a 50% U.S. tariff on its goods since August 27, India has chosen diplomatic and strategic measures over direct retaliation. Experts warn prolonged tariffs could cost up to 0.8% of GDP and threaten millions of jobs in textiles, leather, and jewelry. India is focusing on diversifying export markets, strengthening trade with Mexico, Canada, China, Europe, and Latin America, while supporting exporters with technology and tax relief to maintain competitiveness against rivals like Bangladesh and Vietnam.