US Tariffs and Indian Market Shake-Up
The US announced a 25% tariff on Indian goods starting August 1, causing a ripple effect. The rupee hit an all-time low, while Indian companies like IndiGo and Tata Steel reported mixed financial results. Amidst these events, gold prices rebounded, and DGCA audited airline safety extensively.
- Country:
- India
In a significant move, the US President announced a 25% tariff on Indian goods effective August 1, plus additional penalties. This announcement comes amidst tension over India's purchase of military equipment from Russia. The ripple effects of this decision are evident in the Indian economy's response.
The Indian rupee experienced its steepest drop in three years, closing at a record low of 87.80 against the US dollar. This decline was compounded by the impending US tariff and the lack of a trade deal between the two nations. Indian industries have been closely monitoring these developments.
Despite this turbulent economic climate, some domestic companies remain resilient. Tata Steel reported more than double its net profit for the June quarter, while IndiGo witnessed a 20% drop in profit despite a growth in passenger numbers. Meanwhile, gold prices rallied, recovering from a recent decline, reflecting investor confidence.
(With inputs from agencies.)
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