{"id":5012,"date":"2025-08-13T17:44:42","date_gmt":"2025-08-13T17:44:42","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/08\/13\/trump-tariffs-to-have-limited-impact-on-indias-growth-fy26-forecast-at-6-5-sp-business-news\/"},"modified":"2025-08-13T17:44:42","modified_gmt":"2025-08-13T17:44:42","slug":"trump-tariffs-to-have-limited-impact-on-indias-growth-fy26-forecast-at-6-5-sp-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/13\/trump-tariffs-to-have-limited-impact-on-indias-growth-fy26-forecast-at-6-5-sp-business-news\/","title":{"rendered":"Trump Tariffs To Have Limited Impact On India\u2019s Growth, FY26 Forecast At 6.5%: S&P | Business News"},"content":{"rendered":"


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S&P says India\u2019s GDP likely to grow 6.5% in FY26 despite 50% US duty on Russian oil-linked imports.<\/h2>\n
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An AI-generated representative image shows resilient consumer sentiment in India despite higher US tariffs. (IMAGE: IMAGEN 4)<\/p>\n<\/figure>\n

India\u2019s economy is unlikely to face a major slowdown despite higher US tariffs, S&P Global Ratings said on Wednesday, August 13, nearly a week after a 25 percent duty on Indian goods came into effect and American President Donald Trump announced an additional 25 percent levy linked to Russian oil imports.<\/p>\n

\u201cWe don\u2019t think tariffs imposed on India would have much of an impact on economic growth,” said YeeFarn Phua, director for sovereign and international public finance ratings, Asia, at S&P Global Ratings, according to a report by Moneycontrol<\/em>. The agency expects India\u2019s GDP to grow 6.5 percent in FY26.<\/p>\n

Phua told Moneycontrol<\/em> that exemptions for electronics, especially smartphones and pharmaceuticals will cushion the impact, while India\u2019s export exposure to the US is modest at around 2 percent of GDP.<\/p>\n

Analysts also point to the country\u2019s large domestic market as a continued draw for investors, even under higher tariff regimes.<\/p>\n

India exported goods worth $86.5 billion to the US in FY25, with about 55 percent of this trade at risk from the new duties. The remainder falls under exemption or exclusion categories.<\/p>\n

The initial 25 percent US tariff is on top of most-favoured nation rates, while the Russia-linked penalty, which doubles tariffs to 50 percent on imports from countries buying Russian oil, will be applicable from August 27, putting India among the most tariffed nations alongside Brazil.<\/p>\n

An analysis by Moneycontrol<\/em> estimated India\u2019s effective tariff rate at about 32 percent, more than double the Southeast Asian average. Their analysis highlighted that the government expects GDP growth to remain above 6 percent, aided by a favourable monsoon and stable crude oil prices.<\/p>\n

\u201cThe positive outlook for India remains,” Phua was quoted as saying. S&P sees the most pronounced tariff effects within one to two years but cautions that uncertainty could dampen investment sentiment for longer.<\/p>\n

\u201cEveryone would minimise their investment to relatively safe levels,” said Kim Eng Tan, senior director for APAC sovereign ratings at S&P, while speaking to the outlet.<\/p>\n

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Shankhyaneel Sarkar<\/a><\/p>\n

Shankhyaneel Sarkar is a senior subeditor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over five years of experience during which he has covered sev…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Shankhyaneel Sarkar is a senior subeditor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over five years of experience during which he has covered sev… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Stay updated with all the latest business news, including market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Click here<\/a> to add News18 as your preferred news source on Google. Also Download the\u00a0News18 App<\/a> to stay updated.<\/span><\/div>\n

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News<\/a> business<\/a> Trump Tariffs To Have Limited Impact On India\u2019s Growth, FY26 Forecast At 6.5%: S&P<\/span><\/div>\n
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Last Updated:August 13, 2025, 21:51 IST S&P says India\u2019s GDP likely to grow 6.5% in FY26 despite 50% US duty on Russian oil-linked imports. An AI-generated representative image shows resilient consumer sentiment in India despite higher US tariffs. (IMAGE: IMAGEN 4) India\u2019s economy is unlikely to face a major slowdown despite higher US tariffs, S&P…<\/p>\n","protected":false},"author":1,"featured_media":5013,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-5012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5012"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/5013"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}