India must watch out for GDP growth with third chance at doorstep

Having missed two chances to boost manufacturing, India can't afford to miss the third one now at its doorstep

With every passing day, the outcome of the global tariff war grows harder to predict. One thing is clear, though — it will have significant repercussions for India. Policymakers must find ways to limit the damage to growth — and explore how to turn this setback into an opportunity.

 

It may be tempting to dismiss the tariff war, given India’s predominantly domestically driven economy. Exports to the US make up only 2.3 per cent of gross domestic product (GDP), and even that may overstate their impact, as products like iPhones that India sends to the US have low domestic value