New Delhi: Following indications from US President Donald Trump that tariffs on India could be increased by up to 500 per cent global and domestic business circles have been abuzz. This apprehension has directly impacted the stock market. In the last five trading sessions the Sensex has fallen by nearly 2000 points while the Nifty has also registered a decline of more than 2 percent. On the other hand India has made it clear that it will not succumb to any kind of pressure. The Indian Ministry of External Affairs has explicitly stated that the government is keeping a close watch on global markets to meet the countrys energy needs and that there will be no compromise on national interests. Economic Setback Meanwhile another setback has emerged on the economic front. According to the Reserve Bank of India (RBI) the countrys foreign exchange reserves decreased by $9.81 billion to $686.80 billion in the week ending January 2.  A week earlier foreign exchange reserves had increased by $3.29 billion reaching $696.61 billion. The latest figures clearly show that the recent global uncertainty and market pressure have also affected Indias reserves. Reasons behind decline According to the central banks data the biggest reason for this decline was a decrease in foreign currency assets (FCA) which fell by $7.62 billion to $551.99 billion. These assets valued in dollar terms constitute the largest part of the foreign exchange reserves and include the impact of fluctuations in the value of non-US currencies such as the euro pound and yen. Global scenario The RBI also stated that during this period the value of the countrys gold reserves decreased by $2.06 billion to $111.26 billion. Meanwhile Special Drawing Rights (SDRs) decreased by $25 million to $18.78 billion. Additionally Indias reserve position with the International Monetary Fund (IMF) also declined falling by $105 million to $4.77 billion. These figures indicate that the increasing global tensions and uncertainty are beginning to impact Indias economic situation.