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News1806-01-2026, 17:39

India's Growth Resilient to Trump's Tariff Warnings; US Economy Faces Slowdown

  • US President Donald Trump threatens India with increased tariffs, following an existing 50% tariff.
  • India Ratings and Research projects India's economic growth at 6.9% for FY 2026-27, unfazed by global turmoil or US tariffs.
  • Major reforms like GST, income tax cuts, and free trade agreements are expected to drive economic activity and keep inflation low (3.8%).
  • The Indian Rupee is estimated to average 92.26 per dollar in FY 2026-27, with FTAs boosting foreign investment and reducing CAD.
  • In contrast, the US growth rate is projected to fall to around 2% in FY 2026-27, according to multiple international agencies.

Why It Matters: India's economy shows strong resilience and growth prospects despite US trade threats.

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