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Below the Quote on Market post US tariff announcement by Karthick Jongadla, smallcase Manager and Founder at Quantace Research 

Washington’s 25 % blanket tariff is dramatic, but Indian trade has weathered sharper blows before. After the 1998 Pokhran-II nuclear tests the U.S. triggered Glenn-Amendment sanctions; even so, India’s exports to the United States jumped from roughly $7 billion in 1998 to over $21 billion by 2008, while GDP growth averaged about 7 % through that decade. History shows sanctions sting but seldom derail the structural story

Today’s duty hurts high-value gems, generics and apparel, but the macro drag still looks capped at 40–50 bp of FY-26 GDP. Crucially, the ‘additional penalty’ tied to Russian oil remains blank; the White House has issued no HS-code list or rate, suggesting the tone will moderate once remaining negotiations close

Near-term volatility is inevitable—equity risk-premia rise, the rupee may drift to 87—but domestic liquidity stays deep (Rs.29,000 crore monthly SIP inflows) and policy buffers are ample. New Delhi can accelerate PLI incentives, widen duty-drawback for SMEs and fast-track deals with the EU and Gulf partners to cushion exporters. Net-net, this is a speed-breaker, not a U-turn; investors using a 24-month lens should treat any capitulation pricing as a dividend, not an exit cue. Long-term allocators should stay focused on structural drivers across capex, consumption, credit, and ongoing digitalisation of the economy, and supply-chain formalisation.

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