India's Steady Growth Amid US Tariff Threats: PHDCCI Insights
The US's proposed 500% tariffs on Indian goods pose a threat, but India's growth remains robust due to strong domestic demand and investment. PHDCCI highlights the need for market diversification and emphasizes infrastructure and manufacturing resilience. Challenges include geopolitical tensions and regulatory simplifications for MSMEs.
- Country:
- India
On the heels of a proposal to impose hefty tariffs of up to 500% on certain Indian exports, the US has stirred concerns among Indian exporters. However, robust domestic demand and an economic infrastructure characterized by strong investments are keeping India's growth trajectory stable, according to Ranjeet Mehta, CEO of the PHD Chamber of Commerce and Industry.
In an exclusive discussion with ANI, Mehta pointed out that the proposed tariffs render trade with the US nearly unfeasible, affecting sectors like textiles, engineering, and pharmaceuticals. He urged India to diversify its export markets, emphasizing ongoing trade agreement negotiations with the European Union as pivotal to mitigating trade risks.
Despite the looming international trade barriers, PHDCCI is optimistic about India achieving a 7.4% GDP growth, thanks to domestic consumption and manufacturing resilience. Nevertheless, downside risks such as geopolitical instability persist. To sustain growth, Mehta emphasized the need for continued public investment and simpler compliance mechanisms, especially for MSMEs.
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