New Delhi: The direct impact of higher US tariffs on India looks fluid as of now and a mutually beneficial trade deal by the end of this year would limit the impact, a report showed on Friday. India remains a domestic-oriented economy with consumption accounting for 60 per cent of the total GDP.

On the other hand, merchandise exports accounted for only 12 per cent of GDP in FY24. According to the report by Bank of Baroda (BoB), assuming a 10 per cent decline in value of India’s exports to the US, the total impact on India’s GDP growth is likely to be around 0.2 per cent.

“However, exemptions on pharma products and also the possibility of a trade agreement can limit this impact.