People of India have started boycotting American products against American tariffs
Where on the one hand, the Chief Economic Advisor of India has said that the Trump tariff has no effect on the economy of India. On the other hand, Americans also have no trust in this matter. Yifarn Fua, director of S&P Global Ratings, said on Wednesday that India’s growth will not affect India’s growth as it is not a trade orientid economy and the outlook of its sovereign rating will remain positive.
The rating agency S&P had raised India’s Sovereign rating BBB-to positive in May last year, citing strong economic growth. The US has imposed an additional 25 percent fee for the purchase of Russian crude oil in addition to the 25 percent fee on all Indian products. In this way the total fee will be 50 percent. This fee will be applicable from August 27.
What will be the effect?
Asked whether the fee levied will have a negative impact on India’s positive outlook. If you look at India’s risk towards America in the context of exports compared to GDP (GDP), then it is about two percent. S&P estimates that India’s GDP growth rate in the current financial year 2025-26 will be 6.5 percent, which is equivalent to the last financial year 2024-25.
Statement of Economic Advisor of India
V. Anant Nageswaran, Chief Economic Advisor of India, said on Wednesday that the challenges related to the US fee are not going to last much and will end in one or two quarters. He also said that the country is struggling with other long -term challenges and he urged the private sector to make more efforts to deal with it. Nageswaran blamed the strict status and cash problems for the softening of the growth rate in the financial year 2024-25. The growth rate was 6.5 percent in the financial year 2024-25, which was 9.2 percent a year ago. Nagswaran said that the right agricultural policies can increase the actual GDP (GDP) growth by 25 percent.
People have to keep patience
He said about the American fee that the second and third phases will be affected after the impact of the first phase on areas like gems and jewelery, shrimp and textiles. It will be more difficult to deal with them. Nagswaran said that the government is aware of the situation and negotiations with the affected areas have started. In the coming days, there will be a response from policy makers, but people will have to be patient. Amidst the speculation of US officials coming to India for trade talks later this month, he said that the upcoming meeting between US President Donald Trump and his Russian President Vladimir Putin in Alaska could affect the results of the dialogue. He refused to give any details about the trade talks between India and the US and said that at this time the situation is very unstable and the relationship is moving towards deadlock with cooperation.