India’s economy may not be affected for the fiscal year 2025-26 due to the US tariffs on Indian products.

India’s growth may stay on track:

According to the government official, India’s 2025-26 fiscal year may see progress from 6.3 to 6.8%. India does not feel any chaos in its economy with the rising US tariffs. However, some private economists are not as confident. Goldman Sachs and others have reduced India’s growth forecast by 0.2% to 0.4%, bringing it down to 6.1%. They believe the US tariff hike will slow down India’s export growth and harm overall performance.

US tariffs fuel global tension:

Trump recently raised tariffs on many countries. It includes a 26% duty on Indian imports. Tariffs on some other nations, like China, are even higher. These actions have worsened global trade relations and caused stock markets in Asia to fall sharply.

Also Read: Trump Imposes New Tariffs To Address Trade Imbalances

Indian exporters under pressure:

Indian exporters are feeling pressure due to the US tariffs, especially India’s diamond industry. India exports diamonds to the US. However, the new US tariffs made the diamonds more expensive to US buyers. Moreover, the new tariffs are also affecting the jobs of thousands of workers in the textiles, agriculture and footwear industries. These sectors are very significant for India’s economy.

Government in talks with exporters:

Officials from various ministries are meeting with exporters’ associations to understand the full impact. The government is gathering information before making any big decisions. They want to know which industries are affected the most.

Support plans for exporters:

The commerce ministry has already sent proposals to the finance ministry. It includes extending interest subsidy schemes, helping exporters find new markets, and making more credit available through banks.

A finance ministry official said, “We are still reviewing the situation. We will decide on support plans at the right time.”

No plans to retaliate:

India does not plan to impose any retaliatory tariffs on US products. Government officials believe negotiation is a better approach. The focus is on keeping trade relations stable while protecting Indian interests.

Concerns over labour-intensive industries:

Sectors that hire a large number of people are the top concern for the Indian government. Jobs in textiles, farming, and the leather industries are especially vulnerable. Officials said that the government may expand its export promotion schemes to help these sectors. However, any new aid will depend on how much money the government can spare.

Waiting for the right moment:

Although the government has not announced new measures yet, talks are happening behind closed doors. Officials are keeping a close eye on the situation. Decisions may come soon if exports start falling or job losses increase.