India Unveils Strategies to Counter US Tariff Hikes
The Indian government is developing strategies to combat a hefty 50% tariff increase by the US on Indian exports. Anuradha Thakur, Economic Affairs Secretary, emphasized measures like boosting domestic demand and restructuring GST. The government remains confident in meeting fiscal deficit targets despite temporary discrepancies in the latest fiscal data.
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The Indian government is formulating an action plan to address the significant 50% tariff hike imposed by the United States on Indian exports, according to Economic Affairs Secretary Anuradha Thakur.
Thakur highlighted that employment-heavy sectors with US exposure may feel the impact, but assured that the government is evaluating the potential consequences and working on solutions. Concurrently, domestic demand boosting initiatives have been launched. Key budgetary changes, including zero income tax for incomes up to Rs 12 lakh, aim to benefit taxpayers while new GST reforms are underway to rationalize rates.
The monsoon's favorable outcome could enhance agricultural output, fueling further rural demand growth. Despite a temporary rise in the fiscal deficit figures, Thakur expressed confidence in achieving the 4.4% deficit target, stressing robust economic fundamentals and positive private consumption indicators.
(With inputs from agencies.)
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