"Trump’s tariff attack can’t stop India’s speed," says US agency, revealing a surprising reason (Image Source: Social Media)
US President Donald Trump has imposed heavy tariffs on Indian imports. Following this, disappointment has spread among Indian exporters, but S&P Global Ratings Director YeeFarn Phua says that this will not affect India’s economic growth. India’s sovereign rating outlook will remain positive.
It is noteworthy that as a penalty for buying oil from Russia, the US has imposed a total tariff of 50% on India. A 25% tariff has already been implemented from August 7, and the remaining 25% will begin from August 28. However, experts believe that India’s economy will be able to withstand this blow easily.
Last May, S&P had given India’s sovereign rating of ‘BBB-’ a positive outlook. The reason for this was the country’s strong economic growth. According to S&P’s latest forecast, India’s GDP growth in this financial year will remain at 6.5%, the same as last year. Phua stated that large export sectors like pharmaceuticals and consumer electronics have been exempted from the tariffs. He said, “In the long term, we do not believe these tariffs will be a major shock for India’s economy. Therefore, India’s positive outlook will remain intact.”
When Phua was asked whether US tariffs would affect investment in India, he said that under the ‘China Plus One’ strategy, companies have been increasing business in India for the past few years. Most of these companies are coming to India to meet its vast domestic demand, not just to export to the US. Phua said, “Many companies are investing in India because the middle class here is growing rapidly. Those investing in India do not have the US market as their sole objective.
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