Although that is manageable for Mr Modi in the short term, it comes as the economy is slowing and the stockmarket slumping. A long trade war could undermine his goal of boosting India’s exports to $2trn by 2030 and accelerating annual GDP growth to at least 8%. It could also damage his reputation for cultivating warm ties with Mr Trump.

US President Donald Trump announced new import tariffs on Wednesday (local time), outlining the rates to be imposed on countries around the world, with India facing a 26 percent tariff. Calling Prime Minister Narendra Modi a "great friend,

In the midst of President Donald Trump's efforts to upend the global trade order and shift it in Washington's favour, India is one of the few nations working to lower tariffs and