Department of Economics of L.D. Arts College organized guest lecture on 18th August 2025. Dr. Satyajeet Deshpande was subject expect for the topic “Tariffs and its impacts on the Indian economy” Mr Deshpande timely and sharply focused on the current surge in trade tensions and policy responses. More than 150 students, principal of L.D. Arts college Dr. M.D. Chavda and department of economics with other faculty members who were present in this guest lecture.
He began by defining tariffs as border taxes used to protect domestic industries but warned they transmit costs to consumers and input-using firms, raising inflationary pressures.
Using recent developments as a backdrop, he explained how the U.S. decision to impose much higher additional duties on many Indian goods (raising some rates effectively up to 50%) immediately shrinks market access for Indian exporters and raises compliance costs.
Dr. Deshpande highlighted sectorial exposures—textiles, gems & jewellery, leather and some engineering goods—which face the largest demand shock in the U.S. market and risk near-term output and employment losses.
He pointed out macro spillovers: currency volatility and capital outflows that can amplify tariff shocks, noting recent rupee weakness and market reactions to the tariff news.
Overall, Dr. Deshpande concluded that while calibrated tariffs can be a tactical tool, in the current context they are a significant downside risk to India’s near-term export growth and jobs unless matched by rapid competitiveness reforms and targeted policy support.
