India is poised to achieve its 2025/26 growth projections despite new U.S. tariffs, a finance ministry official stated.
The official emphasized that maintaining oil prices below $70 per barrel is crucial for meeting the anticipated 6.3% to 6.8% GDP growth. This outlook persists even as global markets reel from U.S. President Donald Trump’s recent tariff implementations.
While some economists predict a 20-40 basis point reduction in India’s growth due to these tariffs, particularly affecting sectors like the diamond industry, the finance ministry remains optimistic. A second official noted that key fiscal parameters are expected to remain stable, with provisions already in place to support impacted exporters. “We have already made provisions in the budget for duty remission schemes to help exporters and are open to doing more,” the official stated.
India has opted not to retaliate against the U.S. tariffs, focusing instead on ongoing trade negotiations. This strategic approach aims to position India favorably compared to other Asian nations facing similar challenges.
Despite the global market volatility, India’s emphasis on domestic demand and strategic fiscal planning underscores its confidence in sustaining economic growth amid international trade tensions.
