India-US Tariff Truce: ₹1.4 Lakh Crore Boost, Education Budget Covered

• India's Chief Economic Advisor, V. Anantha Nageswaran, estimates a significant economic boost from reduced US tariffs on Indian exports (50% to 18%).
• Real GDP growth for FY27 is projected to reach 7.4%, up from an earlier estimate of 6.8%-7.2%, potentially adding over ₹1.4 lakh crore to national income.
• This additional growth, equivalent to $15.69 billion, could cover India's education budget and represents 2.6% of the FY27 annual budget.
• Increased exports, rising FPI, and a stronger rupee (potentially to $88 against the US dollar) are expected, easing pressure on RBI.
• RBI may not cut interest rates further due to low inflation and improved growth, though some analysts see room for one more rate cut.

Why It Matters: Reduced US tariffs could significantly boost India's GDP, strengthen the rupee, and cover the education budget.