Trump's 50% tariff on India kicks in as Modi urges self-reliance

Donald Trump's steep 50% tariffs on India have kicked in, weeks after the US president issued an executive order imposing an additional 25% penalty on India over its purchases of Russian oil and weapons.

This makes India - one of the US's strongest partners in the Indo-Pacific - among the countries hit with the highest tariffs in the world. This could deal a blow to exports and growth in the world's fifth largest economy, given that the US was, until recently, India's largest trading partner.

The tariff setback has sent the Indian government into firefighting mode. Earlier this month, Indian Prime Minister Narendra Modi made a promise to cut taxes to mitigate their economic impact. He has also urged domestic self-reliance.

He said that a Diwali gift in the form of a "massive tax bonanza" was on its way for the common man and the millions of small businesses that power Asia's third largest economy.

Wearing a bright saffron turban and addressing crowds of spectators from the ramparts of Delhi's Red Fort during Independence Day celebrations, Modi also urged small shop owners and businesses to put up boards of "Swadeshi" or "Made in India" outside their stores.