Tariff war clouds India's growth outlook, but fundamentals stay strong

However, economists say country's strong fundamentals, lower inflation hold hope

The growth outlook for the Indian economy in the financial year beginning April 1 may be under a shadow of the looming threat of reciprocal tariffs, trade uncertainty, and geopolitical tensions, but economists argue that the inherent strengths and declining inflation would keep India in good stead.

 

Last week, the Union Ministry of Finance (FinMin) cautioned about growth implications of the escalating tariff war unleashed by US President Donald Trump as part of his ‘America First’ policy. Trump has promised to launch reciprocal tariffs on trading partners on April 2, after imposing substantial tariffs on steel, aluminium, and automobiles.

 

“There