Prepared by: Satya Santosh
On July 31, 2025, former U.S. President Donald Trump announced a 25% tariff on Indian imports.
The Indian markets initially reacted negatively, with the Sensex and Nifty50 falling sharply but
recovering to close about 0.3-0.4% lower. The Indian rupee weakened, hovering around INR
87.80/USD.
Gold and silver exporters are particularly vulnerable due to increased tariff burdens. The jewellery
and gems sector could face total duties of 31.5-33%.
Impact on Gold and Silver:
With reduced exports and weaker global demand, Indian gold and silver prices may not rally as
expected. Instead, they may remain range-bound or even fall slightly due to inventory build-up and
subdued export orders. However, domestic investment demand and festive consumption could
support prices partially.
Sectors Most Affected:- Pharmaceuticals: Sun Pharma, Dr. Reddy’s, Biocon fell ~3%- Textiles: Welspun, Trident, Gokaldas- Jewellery: Titan, Kalyan Jewellers- Auto Components: Bharat Forge, Sona BLW- Oil & Refining: Reliance, BPCL- IT: TCS, Infosys, Wipro (moderate impact, hedged by rupee depreciation)
Resilient or Advantaged Sectors:- FMCG and Media: Strong domestic base- Domestic Auto: Limited export exposure- Renewables: Long-term global demand shift
Conclusion:
Despite external pressure, India’s economic fundamentals, strong domestic consumption, and
strategic diversification offer resilience. Certain export-heavy sectors face immediate challenges,
while domestic-oriented and future-focused industries hold promise.
Disclaimer: This report is for informational purposes only and does not constitute investment advice.
Please consult with a certified financial advisor before making investment decisions.
