R2R SSB GD Topic Notes

Fresh SSB batches start around the 1st & 15th of every month.

In Response to Tariffs Imposed by the U.S., What Should Be India's Key Strategy? Leads:

1. Impose Reciprocal Tariffs
2. Strengthen Strategic Ties with Russia and China
3. Focus on Aatmanirbhar Bharat

1. Impose Reciprocal Tariffs

• Retaliating with equal or proportional tariffs may send a strong message of assertiveness and protect domestic producers.
• India has used this tool before — in response to U.S. tariffs on steel and aluminum, it imposed tariffs on U.S. almonds, apples, etc.
• However, over-reliance on this approach may escalate tensions and harm long-term trade interests.

✅ Impact: Short-term leverage, but risks damaging bilateral trade relations.

2. Strengthen Strategic Ties with Russia and China

• Diversifying global alliances can reduce dependence on Western markets.
• Russia remains a critical defense partner, and China is a major trading partner, despite border tensions.
• However, closer alignment with these countries may widen the rift with the U.S. and allies, complicating India’s strategic autonomy.

✅ Impact: Offers geopolitical balance, but may be diplomatically risky.

3. Focus on Aatmanirbhar Bharat

• The most sustainable response is to build domestic capacities, reduce import dependence, and boost exports via innovation and quality.
• Schemes like PLI (Production Linked Incentives) are steps toward creating global champions in manufacturing and services.
• Strengthening local industries will also make India resilient to future external economic pressures.

✅ Impact: Long-term economic sovereignty, growth, and global competitiveness.

Conclusion 

While reciprocal tariffs and shifting alliances may offer temporary relief, the Aatmanirbhar Bharat vision addresses the root issue by building a self-sufficient and globally competitive economy. Strategic self-reliance is the best insurance against trade-related shocks.