The United States’ decision to impose a steep 26% tariff on Indian exports has set alarm bells ringing across industries. From marketing budgets to manufacturing ambitions, the ripple effects are already being felt. But beyond the initial shock, this move may also mark a pivotal moment in India’s evolution as a global economic force — and a test of its soft power diplomacy.
“Every other country—even a small country like the Dominican Republic of Congo—has received 100% parity. If their tariff into the US was 10%, the US levied 10%. From India’s perspective, we had imposed a 52% tariff on them, and now we’ve received 26% in return. It’s half. So perhaps it’s not all punitive — maybe it’s reflective of India’s new stature in the global order,” a marketing industry veteran said.
India’s repeal of the controversial equalisation levy designed to tax digital services was widely seen as a gesture toward international cooperation. But for many, the US’s tariff imposition in its wake feels like a letdown.
“India acted in good faith,” said Sonam Chandwani, Managing Partner at KS Legal & Associates. “We aligned ourselves with the OECD-led multilateral solution on digital taxation. This tariff undermines trust in trade diplomacy and questions the credibility of global tax reforms.”
She warned that the lack of a globally accepted framework for digital taxation leaves Indian platforms vulnerable to unilateral interpretations and regulatory overreach. “It puts Indian tech, marketing, and SaaS companies at greater risk, especially when US regulators are increasingly weaponizing trade policy to undercut competition from emerging markets,” she added.
Her advice to Indian businesses? Bolster their legal contracts with protective clauses — indemnity terms, jurisdiction-neutral dispute mechanisms, and tariff-related force majeure provisions. “This is no longer just about business strategy — it is about legal survival,” she said.
Advertising: From Pause to Pivot
In the advertising sector, the mood is more measured. “Early days,” said Sandeep Goyal, Managing Director at Rediffusion. “The world is still processing these changes. It’s not something we can analyze in isolation. Once the dust settles, we’ll have a clearer picture of the true impact.”
But others are already seeing early indicators of how brands may recalibrate.
Ambika Sharma, Founder and Chief Strategist at Pulp Strategy, noted that the tariffs will inevitably squeeze margins for Indian exporters, and that pressure will trickle into marketing budgets. “Digital ad spends—especially on US-owned platforms like Google and Meta—will likely see a recalibration. Not a pullback necessarily, but a more measured, performance-driven approach. Every rupee will need to justify its ROI,” she said.
This geopolitical moment, she believes, may also spark a shift in storytelling. “I think we’ll see more ‘Made in India’ messaging, nationalistic pride, and value-driven storytelling surface across campaigns—especially in export categories trying to maintain consumer confidence while defending pricing.”
With the repeal of the equalisation levy, there was a brief sense of relief. But Sharma observed that the rising trade tensions have quickly changed the mood. “Marketers are rethinking their platform mix. I do think this is a strong moment for Indian brands to diversify—invest more in homegrown platforms, regional influencer ecosystems, and creator-led commerce models that offer better agility and cost control,” she said.
“That said, we are still heavily reliant on global tech for reach and scale. The change won’t be overnight—but the shift in mindset has begun.”
And that shift is already reshaping how Indian brands approach creativity and platform strategy. Are brands rethinking their storytelling or platform mix especially when it comes to Meta and Google under tighter margins?
“Absolutely,” said Prathap Suthan, Managing Partner at Bang in the Middle. “When your margins are gasping for air, you don’t make cinematic brand films. You make memes.”
He continued, “Indian brands are already swapping their dreamy manifestos for survival slogans like ‘Limited-time offer, please.’ Big-budget Meta and Google campaigns are on their way out. We’re entering the PowerPoint era of advertising, where stock footage cries and royalty-free music is the brand anthem.”
Still, there’s a silver lining to this creative austerity. “This pressure might actually produce sharper ideas,” Suthan said. “When you can’t afford polish, you have to be clever. Some of the freshest storytelling may come from brands that had to ditch their filters and find their voice. And let’s be honest, we could all use less noise and more honesty.”
For Suthan this shift is a full-blown stampede. According to him, “Brands are leaping onto every local platform they can find. Some sound like spices. Others like WhatsApp forwards. They’re going from Reels to Stories, hoping someone, anyone, is still scrolling. Suddenly, local creators filming in their back gardens are getting more attention than glossy influencers with ring lights and strategy decks. They’re cheaper, faster, funnier, and will probably throw in a free cup of chai.
In his view, here’s the upside. This could be the moment India’s digital ecosystem stops being a rental economy and starts owning the land.
Regional creators might finally get the recognition (and revenue) they deserve. Homegrown platforms could thrive with attention that used to be shipped overseas.
These shifting dynamics aren’t just creative; they cut deep into the structure of Indian AdTech as well. With tightening regulations and economic protectionism, many are re-evaluating how platform dependencies, cross-border billing, and data flows are managed.
“Far from being just a challenge, it’s a catalyst for meaningful growth,” said Akshay Chaturvedi, Chief Business Officer at VDO.AI. “By leveraging India’s expanding digital ecosystem, innovating on local platforms, and refining data compliance, we can strengthen our own market presence. This is a chance for Indian AdTech to chart a more self-reliant path forward.”
Still, the road to self-reliance isn’t just about shifting spend—it’s about building alternatives that are scalable, sticky, and sustainable.
“India has already tried with ShareChat, Moj etc. to build local platforms,” said Himanshu Arora, Co-Founder of Social Panga. “But platform building isn’t just about replacing a product like-for-like; it needs ecosystem momentum, cultural stickiness, and above all, a distribution game that’s long-term and relentless.”
He added, “India’s previous attempts (ShareChat, Moj, Josh) did get a bump during the TikTok ban, but sustaining that requires a massive creator monetization engine, tech parity with global giants, and ad ecosystems that brands trust for scale and ROI. And none of that happens overnight.”
The Soft Power Play
Beyond legal strategies, supply chain shifts, or performance marketing recalibrations, this moment also offers a deeper opportunity: to reimagine how Indian brands present themselves to the world.
“Indian brands have always excelled at cost-efficiency and value-for-money products,” said Koshy George, Co-Founder of Kaynta and former executive at Unilever and Marico. “But in today’s protectionist climate, that’s not enough. We need to pivot to world-class design, storytelling, and innovation.”
George pointed to the success of Korean beauty brands that have combined local ingredients with tech and culture to build powerful global franchises. “Indian brands can do the same—drawing from rich cultural codes, indigenous ingredients, and homegrown tech,” he said. “But the narrative has to move from ‘cheap and local’ to ‘world-class and uniquely Indian.’”
What began as a diplomatic step to align with global norms has morphed into a critical inflection point. To navigate this new landscape, Indian companies will need more than just resilience; they’ll need reinvention. Those that can diversify exports, build platform independence, and embrace culturally rich global branding may find themselves not just surviving this shift, but leading a new chapter in India’s rise on the world stage.