New tariffs are now in place on American products after India raised import duties on a range of goods. Shweta Bajaj reports from New Delhi.

India finally reacted to Trump's trade war by imposing retaliatory tariffs on 28 products. The taxes run as high as 70 percent and will impact exports from US to India including agricultural produce like apples, walnuts and almonds. The tariffs will also impact chemical and finished metal products. India said these measures have been taken in the interest of the public. India's stock markets reacted fearing worsening economic relations between US and India.

The global credit ratings agency - Fitch slashed its global economic outlook for 2020 on Monday from 2.8% to 2.7% blaming the ongoing trade war between China and the US. India's growth forecast was also downgraded to 6.6 percent.

SHWETA BAJAJ NEW DELHI "India has been the biggest beneficiary of the Generalized System of Preferences which was designed by the US to help developing countries to sell its products to US consumers. Last year while India imported about 32 billion dollars' worth of products from the US, but its exports to America stood at 54.4 billion dollars. The trade gap led to Trump removing India's favourable trade status on June 5th."

Dhruva Jaishankar from Brookings India says foreign trade is important for India if it wants to achieve its growth targets and it can't be overlooked even if India concentrates on its domestic economy.

DHRUVA JAISHANKAR FELLOW, FOREIGN POLICY, BROOKINGS INDIA "I don't think India can afford to be inward at this point of time. Maybe on the trade front, I think it would be quite contested and quite political but setting aside goods trade for a moment on most other issues, I don't think India can afford to be insular looking. It's a very energy dependent economy - already the third largest importer of energy, second largest number of foreign students after China – meaning students that are sent abroad. It's the largest arms imported for the last 5 years. If you look at any issue from defense, energy to education, to investment – India is increasingly dependent on the rest of the world."

US Secretary of State Mike Pompeo will be in India for talks before the G20 summit. The discussions on trade are expected to continue then before Modi and Trump meet in Osaka. 

Shweta Bajaj, CGTN, New Delhi, India.