Indias exports to the US account for just 2.3 percent of its GDP the agency said.
Global rating agencies S&P and Moody’s along with SBI Research have provided their forecasts on the economic implications of reciprocal tariffs India might face after April 2. These tariffs imposed in response to trade policies from key global partners are expected to influence various sectors from exports to domestic manufacturing.
S&P Perspective
S&P Global suggests that increased tariff barriers could moderately impact Indias export competitiveness particularly in sectors like textiles pharmaceuticals and IT services. The agency notes that India’s strong domestic consumption and ongoing policy reforms may cushion the broader economic effect.
Moody’s Outlook
Moody’s believes that while trade tensions could add some short term pressure on specific industries Indias economic fundamentals remain stable. The agency highlights that government led initiatives such as (Production-Linked Incentives) PLI and trade diversification efforts will help mitigate risks.
SBI Research Analysis
SBI Research indicates that while reciprocal tariffs may lead to initial disruptions in trade flows Indias resilience in global supply chains will help it navigate the changes effectively. The report emphasizes that strategic trade agreements and diplomatic negotiations will play a crucial role in minimizing economic shocks.
The overall consensus suggests that while India could face short term challenges due to reciprocal tariffs longterm strategies focused on self reliance trade diversification and policy support will help sustain economic growth. The evolving situation post April 2 will be crucial in determining the actual impact on various sectors.