US tariffs may not impact India’s growth

New Delhi: As the August 27 deadline for US secondary tariffs of 25 per cent falls this week over Russian oil purchase, analysts and global reports say that a total of 50 per cent tariff is unlikely to significantly impact India’s growth due to a robust domestic demand. While labour-intensive textiles and gems and jewellery segment are expected to see a moderate impact, pharmaceuticals, smartphones and steel are currently relatively insulated because of exemptions, existing tariffs and strong domestic demand. According to S&P Global Ratings, the macroeconomic impact of the hike in tariffs would be cushioned by the large size of the India’s domestic market.
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