Page 21 - Indian Economy

US doubles tariff on India to 50% over Russian crude oil purchases

'Unfair, unjustified, unreasonable', says MEA; new rates from August 28

US tariffs to have 'negligible' impact on India's GDP, exports: Study

The 25 per cent tariffs on Indian goods announced by US President Donald Trump will have "negligible" impact on the country's GDP as only USD 8.1 billion of exports to America might get affected, according to a PHDCCI study released on Wednesday. The tariffs announced by the US are likely to come into effect on August 7, 2025. The paper, released by the PHD Chamber of Commerce and Industry (PHDCCI), also recommends a series of measures to mitigate the impact of US tariffs. "Our analysis indicates that there will be an estimated impact of only 1.87 per cent on India's total global merchandise exports and a negligible 0.19 per cent on India's GDP as a result of a 25 per cent tariff announced by the US on India," said Hemant Jain, President, PHDCCI. The study said the total potential export impact is estimated at USD 8.1 billion based on 2024-25 merchandise exports of USD 86.5 billion (1.87 per cent of India's total global export). Among other sectors, the study said the levies would

India in Flux offers up new ways to think about complex challenges ahead

Few could have played the role Shankar Acharya did-navigating political, fiscal, and global pressures with clarity and conviction

Deloitte projects India's FY26 growth at 6.4-6.7%, flags global risks

Deloitte India on Tuesday projected India's economic growth at 6.4-6.7 per cent in the current fiscal citing robust domestic fundamentals and expanding global opportunities. It, however, said that India must monitor its trade exposure and be prepared for the outcomes of geopolitical uncertainties Strategic trade negotiations, notably with the UK in May and the ongoing talks with the US, and the highly anticipated deal with the European Union by the end of the year, will likely act as powerful multipliers of income, jobs, market access, and domestic demand. India's economic growth was at 6.5 per cent in 2024-25. Deloitte projects 6.4-6.7 per cent growth for FY 202526, driven by resilient domestic demand, easing inflation, and a bold push in domestic policy and global trade diplomacy, it said in a statement. "India's economic trajectory stands out in a turbulent global landscape. Our momentum is driven by a virtuous trifecta, resilient capital markets, a dynamic consumer base and a

Limited US access to hit India's manufacturing growth plans, says Moody's

Moody's Ratings on Monday said curtailed access to the US market will diminish prospects for India to develop its manufacturing sector, but the country's domestic demand will remain resilient to these external pressures. US President Donald Trump has announced a 25 per cent duty on imports from India, which will come into effect from August 7 (9.30 am IST). These will be over and above the existing standard import duty in the United States. On top of the import duty, Trump has announced imposing a 'penalty' on India for Russian imports. However, the rate of penalty is yet to be announced. Moody's Ratings, Senior Vice President, Christian de Guzman said the revised tariff rate assessed on Indian goods is significantly above those from other major exporters in the APAC (Asia-Pacific) region, many of which have duty rates between 15 per cent and 20 per cent. "Curtailed access to the largest economy globally diminishes prospects for India's ambitions to develop its manufacturing sector

Trump's dead economy remark should not be taken literally: Shashi Tharoor

Congress MP Shashi Tharoor has said US President Donald Trump's remark terming India a dead economy was meant to be an "insult" and must not be taken "literally". Tharoor on Sunday said that when wars are being conducted with the active involvement of some of the biggest powers, and people who are supposed to be upholding world order are contributing to promoting disorder, India needs to be very clear about its national interests. The senior Congress leader, who was in conversation with Crossword CEO Aakash Gupta in Pune, spoke on a wide range of issues, including his latest book, "The Living Constitution". US President Trump last week called India a dead economy just hours after he announced a 25 per cent tariff on the import of Indian goods along with an unspecified penalty for buying vast majority of Russian military equipment and crude oil. Tharoor said that it is a turbulent and unpredictable world, especially with Trump in the White House. "On Trump, let me say, you can't ta

Integrating services into production can create more jobs, says CSEP

Services like construction, transport, and distribution play a significant role in supporting job creation in the manufacturing sector, the paper, based on empirical estimates, concluded

Our tariff, non-tariff barriers should be cut in our own interest

A US trade delegation is expected in India later this month and hopefully, the negotiators will strike a fair deal acceptable to both countries soon

Uttar Pradesh govt's $1 trillion target gets economic advisory support

UP has become a rare state in India to have a Chief Minister's Economic Advisory Group (EAG), similar to the Prime Minister's Economic Advisory Council

Samsung calls India key strategic market, upbeat on growth prospects

Consumer electronics major Samsung sees India as a "key strategic market" with "immense potential" and stays optimistic about its growth trajectory, a top company official said. The comment comes against the backdrop of global trade and tariff turmoil, and the latest US salvo of 25 per cent tariff imposition on India. India is not just a strategic market for Samsung but a key pillar in its global future, said JB Park, President and CEO, Samsung Southwest Asia, adding the South Korean Chaebol will "continue to invest in innovation, manufacturing, and local value addition, aligning with India's vision of a self-reliant economy." Samsung's long-term commitment to India remains unwavering, as it sees the country as a cornerstone of its global strategy, he said. Samsung views India as a key strategic market with immense potential. The company remains optimistic about India's growth trajectory, driven by government initiatives like Make in India, Digital India, and a robust digital ...

To handle Trump's irrationality, India must fix its own bipolar discourse

To protect ourselves from Trumpian diplomacy, we must first introspect the bipolarity within our establishment discourse. You could start with Modi's rise in the summer of 2014

Section 232 returns: Trump's tariff hits $360-mn Indian copper exports

Move targets national security but may raise costs for US sectors like EVs, semiconductors, and defence

India readies for US tariff impact, rules out retaliation over Russia ties

New Delhi may not retaliate against US' 25% levy and Russia penalty

Trump tariffs may drag India's FY26 GDP growth by 20-40 bps: Economists

Apart from the 25 per cent tariff, Trump on Wednesday threatened to impose a penalty on India for buying Russian oil and defence equipment

India stays firm on Russia ties, farm sector as Trump imposes fresh tariffs

Government sources say India won't retaliate immediately to US tariff move but will protect national interests in defence, dairy and agriculture

Trump calls India and Russia 'dead economies' but data tells a different story

From India's trillion-dollar export surge to Russia's energy strength, trade data counters Trump's claim amid escalating tariffs and tensions

AIIB sees India exposure rising to $20 billion over next five years

Multilateral lender AIIB's exposure to India may grow to reach USD 20 billion over the next five years from the present USD 12 billion, a senior official said on Thursday. The Asian Infrastructure Investment Bank (AIIB) has asked all potential borrowers to undertake an exercise to list out a pipeline of possible projects which it can lend to, its Vice President for Investment Solutions Ajay Bhushan Pandey told reporters here. "The USD 12 billion India exposure can become USD 20 billion in the next 4-5 years," said Pandey, a career bureaucrat who joined the bank post-retirement, on the sidelines of a FICCI industry event here. He said AIIB plans to increase annual lending to about USD 17 billion over the next few years, up from the present USD 10 billion. "We about USD 2-3 billion of the additional USD 7 billion can come to India (annually)," Pandey said, noting that India is already the largest borrower in its USD 60 billion portfolio. India is the second-largest shareholder in AI

Rahul Gandhi agrees with Trump calling India 'dead economy'; allies differ

Rahul Gandhi echoes Donald Trump's 'dead economy' remark for India, but Congress leaders and INDIA bloc allies reject the claim, citing strong economic data

Everybody except PM, FM know India is 'dead economy': Rahul Gandhi

Congress leader Rahul Gandhi on Thursday said everybody except Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman know that India is a dead economy, as he alleged that the BJP-led government has destroyed India's economic, defence and foreign policies. Speaking with reporters in the Parliament House complex, Gandhi also claimed that a trade deal with the US will happen and Trump will define it, while Prime Minister Modi will do what the American President tells him to do. Gandhi's remarks came after US President Donald Trump announced the imposition of 25 per cent tariff and penalties on India and called India and Russia dead economies. Asked about Trump's criticism of the Indian economy, Gandhi said, He is right, everybody knows this except the prime minister and the finance minister, Everybody knows that the Indian economy is a dead economy. I am glad that President Trump has stated a fact. Gandhi alleged that the BJP has destroyed the Indian economy in order to

US tariff to hit Indian electronics sector; IT exports may feel ripple

Trump's 25% tariff may strain India's electronics manufacturing in the short term; experts urge value chain shift, export diversification, and AI in IT delivery