US Tariff Rollback Boosts India's Growth Outlook, Rupee Rally Short-Lived: Experts

• US tariff rollback on Indian products significantly upgrades India's growth outlook, with HSBC projecting growth closer to 7%.
• The 25% punitive tariff elimination removes a major impediment, previously estimated to reduce GDP growth by 70 basis points.
• Experts warn the rupee's rally may be short-lived, with Barclays forecasting gradual depreciation to 94 per dollar by year-end.
• Foreign investor sentiment is more favorable, but a rapid surge in inflows is unlikely due to valuation concerns and bond market challenges.
• Trade deficit risks persist as India expands market access for US products, potentially increasing imports and widening the deficit.