Will the US Tariff Increase Affect India's GDP?
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Synopsis
In a revealing statement, Commerce Minister Piyush Goyal asserts that the recent US tariff hike won't significantly impact India's GDP. With a strong domestic market and increasing GST benefits, India is positioned well despite challenges in the textile sector. Discover how these dynamics shape India's economic future.
Key Takeaways
- US tariff hikes are unlikely to significantly impact India's GDP.
- India has a strong domestic market that supports growth.
- The textile sector may face challenges from US tariffs.
- GST rate cuts are expected to boost disposable income.
- India and the US maintain a positive strategic partnership.
New Delhi, Sep 9 (NationPress) Commerce and Industry Minister Piyush Goyal stated on Tuesday that the recent US tariff increase is unlikely to have a major effect on India's GDP since the nation does not rely heavily on exports for its economic growth.
While speaking at the NDTV Profit conclave, Goyal emphasized that India boasts a robust domestic market and has a significant dependence on imports. He reiterated that the country's GDP growth is not contingent on export performance.
Nevertheless, Goyal pointed out that the textile industry could experience notable repercussions from US tariffs. He remarked, "There are two or three sectors that will bear the brunt of US tariffs, with textiles being a prominent one."
Furthermore, Goyal mentioned that a reduction in the GST rate would enhance disposable income, thus elevating demand within the economy and promoting growth. He added that Prime Minister Narendra Modi has taken significant strides over the past 11 years to fortify the nation's economy.
Goyal remarked that it is not US President Donald Trump who keeps him awake at night, but rather PM Modi's determination to serve the public.
He also highlighted the friendship between the US and India, stating, "All good things take time," alluding to ongoing bilateral trade discussions.
His comments follow President Trump's recent positive remarks regarding India during the SCO meeting in Beijing, where PM Modi was present.
“I will always be friends with Modi; he is a great Prime Minister. India and the United States share a special bond. There is nothing to worry about,” Trump expressed.
In response, Prime Minister Modi stated: "I deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of India-US ties."
“India and the US maintain a very positive and forward-looking Comprehensive and Global Strategic Partnership," he posted on X.
Point of View
It is imperative to recognize that while US tariffs pose challenges, India's resilient domestic economy and strategic governmental measures ensure stability and growth. Piyush Goyal's insights reflect a broader understanding of global trade dynamics, reinforcing our commitment to national interests and economic progress.
NationPress
09/09/2025
Frequently Asked Questions
What sectors will be affected by the US tariff hike?
The textile sector is expected to face significant repercussions due to the US tariff increase, as highlighted by Minister Piyush Goyal.
How does India's GDP growth relate to exports?
India's GDP is not heavily reliant on exports, as the country has a strong domestic market and is largely import-dependent.
What is the expected impact of GST rate cuts?
The reduction in GST rates is anticipated to increase disposable income, leading to higher demand and economic growth.
What is the nature of India-US relations?
India and the US share a special relationship characterized by a Comprehensive and Global Strategic Partnership.
What did PM Modi say in response to Trump's remarks?
PM Modi expressed appreciation for President Trump's positive sentiments regarding India-US ties and reaffirmed the strength of their partnership.
