S&P Global Ratings Confidence in India's Economy

Despite the recent imposition of additional US tariffs on Indian imports, S&P Global Ratings director YeeFarn Phua expresses confidence that India's economic growth will remain unaffected. This optimism stems from India's limited reliance on trade-oriented activities, with exports to the US constituting just about 2% of its GDP.

Impact of US Tariffs on India

US President Donald Trump's announcement of an additional 25% tariff on all Indian imports, effective from August 27, has raised concerns. However, S&P's positive outlook on India's sovereign rating of 'BBB-' remains unchanged, highlighting the country's robust economic growth potential.

India's Trade Dynamics

YeeFarn Phua elaborates, "India's economy is not heavily dependent on trade, which insulates it from the immediate impacts of such tariffs. The minimal exposure to US exports further diminishes the potential for significant economic disruption."