India faces a severe hit to its overseas trade as steep US tariffs on Indian products took effect on Wednesday, threatening more than half of its exports to its largest market.

The US has imposed a combined 50% tariff on Indian goods, following President Donald Trump’s earlier decision to double down in response to New Delhi’s purchases of Russian oil.

The Indian government estimates that the move will impact $48.2 billion worth of exports, with officials warning that many shipments could become commercially unviable.

Labour-intensive sectors such as textiles, gems and jewellery, leather, food, and automobiles are expected to be hardest hit, according to the Global Trade Research Initiative.

The think tank’s founder, Ajay Srivastava, called the tariffs “a strategic shock” that could wipe out India’s long-established presence in the US market.

Exporters fear widespread job losses. Puran Dawar, a footwear exporter from Agra, described the tariffs as “an absolute shock” and warned that small and medium firms would struggle to survive. Ajay Sahai, director general of the Federation of Indian Export Organisations, said some product lines may “become unviable overnight.”

The US has exempted pharmaceuticals and electronic goods, offering some relief for India’s key sectors.

Prime Minister Narendra Modi has vowed not to yield to US pressure to open India’s agriculture and dairy markets, insisting his government will protect farmers and small businesses.

New Delhi is preparing reforms to boost domestic demand, including tax cuts and incentives for exporters, as it braces for the fallout.