India is prone to meet its projected progress goal of 6.3%-6.8% for the fiscal 12 months 2025/26 if oil costs stay beneath $70 ( ₹5,810)/barrel, regardless of world disruptions as a consequence of US tariff bulletins, a Union finance ministry official stated.
The response from the Indian authorities officers comes from even economists, together with at Goldman Sachs, who’ve lowered India’s progress estimates by 20-40 foundation factors to six.1% for the present 2025/26 monetary 12 months, citing the impression of the worldwide tariffs imposed by US President Donald Trump.
A 26% tariff on Indian imports, with even increased levies on different nations like China, has escalated world commerce tensions, with main inventory indices plunging in Asia on Monday.
India’s diamond business, which ships greater than a 3rd of its exports to the US, is predicted to be among the many worst-hit sectors, placing 1000’s of jobs in danger.
The officers stated discussions are underway with ministries and exporters’ associations to evaluate the fallout.
The Union finance ministry has already obtained 4 to 5 proposals from the commerce ministry to assist export industries, together with an extension of curiosity subsidy scheme, support for diversification, and elevated financial institution credit score, a second official informed Reuters.
“We’re nonetheless finding out the impression of tariff hikes on the export sectors and the choice might be taken on the applicable time,” Reuters quoted the official as saying.
A 3rd finance ministry official, nonetheless, stated the tariffs wouldn’t weigh closely on India’s key fiscal parameters for the 2025/26 12 months.
India’s finance ministry didn’t instantly reply to an e-mailed request for remark, the information company added.
The company earlier reported that India doesn’t plan to retaliate in opposition to Donald Trump’s tariffs as officers attempt to negotiate a decision.
On Monday, traders’ wealth eroded sharply by ₹20.16 lakh crore because the benchmark indices confronted heavy drubbing, with the Sensex dropping over 5 per cent, amid a world market meltdown as a consequence of rising commerce warfare issues.
The 30-share BSE benchmark tumbled 3,939.68 factors or 5.22 per cent to 71,425.01 in early commerce.
