US EditionIndia economic growth beats forecasts but tariffs loom
India's GDP rose 8.2% in Q2 driven by consumer demand and manufacturing, but US tariffs could cut exports from $86.5 billion to $49.6 billion this fiscal year, analysts warn.
- On Friday, India's statistics ministry reported the economy grew faster than expected in the July-September quarter, driven by higher consumer demand and solid manufacturing sector growth.
- Long ago, the world's fifth-largest economy slowed in the second half of 2024, with annual growth weak in the fiscal year that ended March 31, as Washington imposed 50-percent US tariffs on most Indian products tied to New Delhi's Russian oil purchases.
- Exporters rushed shipments to beat tariffs between April and August, but exports in October fell as tariffs took effect; Prime Minister Narendra Modi's government approved relief measures and labour law reform on Friday.
- The International Monetary Fund recently cut its forecast for India's next financial year, citing a baseline of prolonged 50-percent US tariffs, while the Global Trade Research Initiative warned exporters could face steep export losses.
- Despite the rebound, Aditi Nayar warned `An adverse base, the potential negative impact of US tariffs and limited headroom for capital spending by the government of India may dampen the pace of growth`.
30 Articles
30 Articles
India's Q2 Growth Hits 8.2%, Beating All Forecasts
India’s economy experienced significant growth of 8.2% year-on-year in the July-September quarter, up from 7.8% in the previous quarter. This growth was driven by strong consumer spending and manufacturing, despite global trade challenges, including a new 25% tariff imposed by the U. S. on Indian exports, raising the total rate to 50%. Economists had predicted […] The post India’s Q2 Growth Hits 8.2%, Beating All Forecasts appeared first on Mode…
India growth beats all estimates as factories defy Trump tariffs
India’s economy grew at the fastest pace in six quarters, underscoring its resilience even as US President Donald Trump’s steep tariffs cloud the outlook. Gross domestic product rose 8.2% in the three months through September from a year earlier, the Statistics Ministry said Friday, beating all 38 estimates in a Bloomberg survey of economists and much faster than the 7.4% median forecast. The economy had expanded 7.8% in the April–June quarter. …
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
