New Delhi: At the beginning of the new financial year, challenges are emerging in the development scenario of India’s economy. The reason for this is tariffs, trade uncertainty and increasing geopolitical stress. However, economists argue that India will be in a better position due to internal strength and declining inflation.
The Finance Ministry last week expressed concern about the impact on development due to uncontrolled increase in tariffs under the ‘US First’ policy of US President Donald Trump. Trump has threatened to impose retaliation on business partners from 2 April. In this sequence, a heavy duty has been levied on steel, aluminum and automobiles.
According to economists, many things are still unknown. We do not know how these risks will appear. It is not known what the effects of mutual tariffs will be, but they can affect global development. Global development is expected to decline. Its impact on the Indian economy can be from 5 to 10 basis points, but other effects may be much higher.
Some economists believe that business uncertainty will be less in the coming times and this can also give more clarity to investors. Many experts estimate that the recession in development in FY 2024-25 may accelerate overall growth during the next financial year. Reducing inflation pressure and increasing domestic consumption demand will also help promote this growth.
Additionally, due to low inflation, limited global crude oil prices, government tax incentives, low lending rates, excess liquidity and more stable global environment, perception is expected to remain strong by the end of this year.
The post tariff will affect India’s economy 5 to 10 basis points first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
