Despite the global market turmoil triggered by President Trump’s tariffs, India remains optimistic about achieving its projected economic growth target of 6.3%-6.8% for the 2025/26 fiscal year (April-March), Reuters reported quoting a finance ministry official
This confidence hinges on maintaining oil prices below $70 per barrel, providing a cushion against external economic shocks.
The comments come as a trade war, sparked by Trump’s tariffs on trading partners, rattles global markets, with major stock indices across Asia experiencing significant declines on Monday.
While some economists have cautioned that Trump’s tariffs could shave 20-40 basis points off India’s growth in the current financial year and potentially cripple key sectors such as the diamond industry (which sends over a third of its exports to the US), putting thousands of jobs at risk, the Indian government appears to be taking a more measured approach.
Another finance ministry official told Reuters that the tariff announcements are not expected to significantly impact India’s key fiscal parameters for the 2025/26 year, suggesting a belief in the resilience of the domestic economy.
India is prepared to take further steps to support exporters affected by the higher US tariffs, the second official added, signaling a proactive approach to mitigating any potential negative consequences.
“We have already made provisions in the budget for duty remission schemes to help exporters and are open to doing more,” the official stated, highlighting the government’s commitment to supporting Indian businesses.
Both officials requested anonymity, as they were not authorized to speak to the media.
The Indian Finance Ministry did not immediately respond to an emailed request by Reuters for comment.
India pursues trade deal with the US
India is not planning to retaliate against Trump’s 26% tariff on imports from the Asian nation, as talks for a trade deal between the two countries are ongoing, Reuters has reported.
This decision reflects a strategic approach focused on pursuing a mutually beneficial trade agreement rather than escalating trade tensions.
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