India's Economy Accelerates Amidst US Tariff Challenges
India's economy grew unexpectedly in April-June, with GDP expanding by 7.8%, defying concerns over increased US tariffs on Indian imports that could affect exports. Despite increased tariffs, the government maintains its growth forecast for the year, with domestic spending rising and support measures in place.
India's economy registered a surprising acceleration in the April-June quarter, defying expectations of a slowdown despite looming US tariffs on Indian imports. The GDP rose by 7.8%, marking the fastest growth in five quarters, as per government data released on Friday.
The increase comes despite a sharp rise in US tariffs on Indian goods, which doubled to 50% due to continued Russian oil imports. This fuelled concerns among economists about potential impacts on exports like textiles and chemicals. However, India's government officials maintain a positive outlook, with efforts in place to counter tariff pressures.
Key drivers of growth included a significant rise in consumer spending and government expenditure, buoyed by tax reliefs and proposed cuts. Economists caution that prolonged tariff impositions may hamper growth, but the Indian economy remains on track for a robust performance.
(With inputs from agencies.)
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