Aug 27: Tariffs start today, Sports beyond cricket see life

Good morning! In what we would like to interpret as a show of solidarity, American political analyst Christine Fair decided to drop a very desi gaali for US President Donald Trump in the middle of a debate about US, India, China and Tariffs. Midway through her sharp analysis she called him ch****a not once but twice leaving the journalist interviewing her thrown but also low-key impressed by her immaculate pronunciation. It’s made the rounds on socials, so we’ll let you see it to believe it.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian stock market fell sharply on Tuesday by 1% after the US administration issued a draft notice to impose a 50% tariff on Indian exports. 

Tariff notice issued: It’s happened. US President Donald Trump’s executive order to raise tariffs on India to 50% was formalized by the Department of Homeland Security this week. As per their latest notice the new measures will take effect from 12:01 am Eastern Daylight Time on 27 August under the policy of countering “threats to the United States by the government of Russian Federation”. And nowhere is the impact being felt the most other than in the Jewellery, Apparel and Seafood industry.

Diamonds under Pressure: The shockwaves are most visible in Surat, home to the world’s largest diamond cutting and polishing hub. The Surat Diamond Bourse, inaugurated with fanfare by PM Modi in December 2023 as a symbol of “new India’s strength and resolve,” stands eerily quiet. Despite housing 4,700 offices across nine glittering towers, fewer than 250 are in use. Orders are drying up as U.S. buyers recoil under looming tariffs, at a time when India’s gem and jewellery exports (worth $28.5 billion annually) are already at a two-decade low on weak Chinese demand. With the U.S. market accounting for nearly a third of shipments, the 50% tariff threaten to sever a vital artery.

Apparel pinch: The apparel industry tells a similar story. Tiruppur, India’s garment capital, contributes a third of the country’s $16 billion ready-to-wear exports to brands such as Target, Walmart, Gap, and Zara. But work has slowed drastically, and expansion plans are on ice. At a 50% tariff, an Indian-made shirt that once sold for $10 in the U.S. would now cost $16.40, pricing it out against China ($14.20), Bangladesh ($13.20), and Vietnam ($12). Even if duties ease to 25%, India will remain less competitive than its Asian peers.

Shrimp in stress: Seafood exporters face an equally dire picture. India is one of the world’s largest shrimp suppliers, with the U.S. as a top destination. With new duties pushing total tariffs above 60%, the sector faces a body blow. Prices have already dropped sharply, and hatcheries are slashing output, raising fears for the livelihoods of millions tied to shrimp farming.

When the tide comes in: The timing of these tariffs could not have been worse. Nearly half of India’s annual export sales are logged in the run-up to Christmas and New Year. Now, with orders frozen or cancelled, exporters face mounting inventories, thinning margins, and uncertain futures. The government has scrambled to cushion the blow, cutting import duties on raw materials and accelerating trade talks with partners such as the UK and Australia. Yet, many fear these moves are too little, too late.

Rewriting sports fandom: Cricket still dominates Indian sport, but the ground beneath its feet may be shifting. According to the Nielsen Fan Insights 2025 study, Indian youth are steadily branching out, with basketball, mixed martial arts (MMA), motorsport and golf showing sharp spikes in popularity. While cricket and football remain at the top, both have slipped slightly since 2019. The bigger story, however, is not about decline but about the rise of new contenders.

Shifting scene: The report signals a generational transition in India’s sports culture. Streaming platforms, social media communities, and the growing visibility of international leagues are making global sports part of mainstream conversations. For a country that once treated cricket as near-religion, this diversification suggests not only an expanded entertainment palette but also fresh commercial opportunities. According to the report, Basketball and motorsport have posted the sharpest climbs in viewership amongst the youth. MMA and golf have also gained steady traction. Badminton, often seen as steady, has held its ground at 56% (of youth’s who watch a sport) thanks to India’s Olympic medallists and world champions. Kabaddi, however, is losing steam, slipping from 55 per cent to 49 per cent after its Pro Kabaddi League fuelled boom. The shift is being fuelled by digital access. With NBA and Formula 1 streaming live into Indian homes, younger audiences are discovering new heroes beyond cricketing icons.

Getting due: This change is also being felt by athletes. As Neeraj Chopra put it in June 2025 while announcing his NC Classic tournament: “Happy that now in India people recognise other sports than cricket.” His words echo the sentiment of many non-cricket sportspersons long overshadowed by cricket’s dominance. 

Tariff troubles: Goldman Sachs’ Santanu Sengupta (Chief India Economist) warned that the new 50% US tariffs could reduce India's GDP growth by up to 6% affecting 60-65% of the country's exports. However, he also highlighted that India’s household financial savings could climb up to 13% from 11% in the long run. 

₹’s gradual rise: RBI Governor Sanjay Malhotra stated that, while the central bank is promoting rupee internationalisation, it will be a slow process that will take "decades" for trade to happen in local currencies.  

Suzuki’s India push: Suzuki Motor will invest ₹70,000 crore in India over 5-6 years to boost production, as PM Modi flags off the new e-Vitara BEV for exports to 100+ countries.

Funds at red alert: RBI told banks and NBFCs to tighten checks on funds routed indirectly from Pakistan, flagging “high risk” of arms financing, while citing a June 2025 FATF report. North Korea is also tagged “high-risk”. 

India-Japan Pact: Japan is set to invest $68 billion in India over the next decade. The investment will focus on sectors like AI and semiconductors, with a plan to hire skilled Indian workers to address labour shortages in Japan.