India's Economy Defies Odds: Unexpected Growth Amid Rising US Tariffs

India's economy delivered an unexpected performance, posting stronger growth in the April-June quarter amidst rising U.S. tariff pressures.

Facing doubled tariffs up to 50% on its exports to the U.S., India, Asia's third-largest economy, saw its GDP rise to 7.8%, surpassing economists' predictions, with significant growth observed in manufacturing and construction sectors.

Prime Minister Narendra Modi's administration is crafting strategic responses, including potential tax cuts, to support the affected sectors and sustain the nation's economic momentum, while the Reserve Bank of India remains cautiously optimistic.

(With inputs from agencies.)