US duties prevent India from achieving its target GDP growth

By Alimat Aliyeva

Duties on imports of Indian goods to the United States will not affect India's budgeted goal of achieving economic growth of 6.3-6.8% this year, Azernews reports.

According to officials, the situation is unlikely to change if oil prices remain below $70 per barrel.

The Ministry of Finance has stated that Indian authorities are prepared to support exporters who are affected by the increase in U.S. tariffs. "We have already introduced duty exemption schemes in the budget to assist exporters, and we remain open to implementing additional measures if necessary," said a representative from the Ministry.

This response highlights India’s resilience and proactive approach to mitigating external trade challenges. While the tariffs may cause short-term disruptions, the Indian government appears confident that its broader economic fundamentals, including robust domestic demand and a growing services sector, will help sustain the country's growth trajectory.

Interestingly, this situation also underscores the complex relationship between India and the U.S., where trade tensions, particularly in sectors like agriculture and technology, have the potential to impact both countries' economies. India’s strategic approach, focusing on economic diversification and support for affected sectors, suggests that the country is positioning itself to weather external shocks while pursuing long-term growth.