India’s “Billionaire Raj” Faces Uncertainty As Modi Works To Avert Trump Tariffs
India-West News Desk
NEW YORK, NY – As U.S. President Donald Trump’s April 2 deadline for imposing reciprocal taxes on imports draws near, India’s so-called “Billionaire Raj” is facing a significant challenge, Bloomberg reported. The new pressure from the U.S. comes as India has begun adjusting its trade policies, signaling a shift that could shake the influence of the country’s richest business magnates.
The past decade has seen the wealth of India’s top businessmen—including Mukesh Ambani, Gautam Adani, and the Tata Group—grow exponentially, with the top five groups’ share of non-financial assets rising from 10% in 1991 to 18% by 2021. Modi’s policies, designed to shield these tycoons through hefty tariffs and favorable government contracts, have created an oligarchic system that has dominated India’s economic landscape, Bloomberg said. These conglomerates began acquiring larger and larger shares of their respective sectors after Modi became prime minister in 2014.
However, the Trump administration is now pushing India to reduce its trade barriers, including the 39% tariffs India places on agricultural imports—significantly higher than the U.S. rate. This demand comes amid the U.S.-India trade imbalance, where India enjoys a near-$50 billion surplus with the U.S., which Trump aims to reduce. As Bloomberg highlighted, Modi’s government has traditionally supported its billionaires, but now, with Trump’s trade pressure mounting, that support may weaken.
Adding to the pressure, Modi’s government has faced continued agitation from farmers who reject his market-based pricing reforms, making it politically risky for the prime minister to make any trade concessions on agriculture. Given that nearly half of India’s workforce is involved in farming, Bloomberg noted that the government’s trade strategy may shift the burden of Trump’s demands onto local billionaires.
In an unusual move, India’s two largest wireless carriers—whose billionaire owners have long opposed Elon Musk’s entry into their market—announced partnerships with Musk’s Starlink Inc., signaling a change in trade dynamics. Modi’s government also signaled a willingness to lower duties on Tesla Inc.’s cars during the prime minister’s recent visit to the White House, suggesting that New Delhi is softening its stance on foreign investments.
Bloomberg concluded that the sudden shift in India’s trade policies sends a clear message to the country’s billionaire elite: their influence may no longer be as secure as it once was.
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