India's Growth Amid Tariff Tensions: Navigating the U.S.-Induced Economic Challenges

India aims to maintain its 6.3%-6.8% growth for the 2025/26 fiscal year despite U.S. tariffs, dependent on stable oil prices. The tariffs, impacting sectors like diamonds, have led to revised growth forecasts. Officials evaluate strategies to support export sectors while avoiding retaliation.

Despite global challenges, India remains optimistic about meeting its growth projection of 6.3%-6.8% for the fiscal year 2025/26. Key to this goal is oil prices remaining below $70 per barrel, even as U.S. tariffs disrupt global trade.

The recent 26% tariff on Indian imports, alongside higher levies on countries like China, has intensified global trade tensions. This scenario poses significant risks to India's export sectors, notably the diamond industry, which heavily relies on the U.S. market.

In response, Indian officials are negotiating measures to mitigate these impacts, considering proposals such as extending interest subsidies and increasing bank credit. Although direct retaliation is not on the agenda, the government's focus is on adjusting export promotion schemes to support vulnerable sectors.

(With inputs from agencies.)