Tariff

India’s economic growth is projected at 6.6%, reflecting resilient domestic demand even as external pressures intensify. A recent United Nations assessment highlights how tightening global financial conditions and renewed trade frictions—particularly higher US tariffs—could moderate momentum in the near term. While India remains among the fastest-growing major economies, export-oriented sectors may face headwinds from weaker global trade and shifting supply chains.

India’s economy is forecasted to expand at 6.5% in the fiscal year 2025-26, reflecting steady domestic demand, investment growth, and resilient consumption patterns. However, analysts caution that rising US tariffs and global trade tensions may pose headwinds for India’s export-driven sectors, potentially affecting the country’s trade balance and manufacturing growth. Policymakers are expected to monitor these external developments closely while implementing structural reforms to sustain growth momentum.