Indias Economy Resilient Despite US Tariff Pressures

Indias Economy Resilient Despite US Tariff Pressures

Last Updated Oct - 03 - 2025, 12:28 PM | Source : Fela News

Finance Minister says India can absorb shocks and eyes 8% GDP growth amid global challenges.

In a tough global backdrop with escalating trade tension, Union Finance Minister Nirmala Sitharaman project confidence that India’s economy are resilient enough to absorb external shock. The pressure come especially after United States threaten tariff up to 50 percent on Indian import, a move many fear could heavy disrupt export sector.

Speaking on a public event, she emphasize that India’s macro-economic fundamental is strong, and the country not overly depend on foreign demand. Instead, growth are anchor more and more in domestic consumption, investment, and structural reform. This internal strength, she argue, provide buffer even when headwinds grow strong abroad.

Sitharaman also repeat government target of achieving 8 percent GDP growth. Though ambitious, she call this target necessary to fulfill India’s larger vision of become a developed nation by centenary in 2047. To support that, capital expenditure, infrastructure invest, and enabling private sector growth will be key pillar.

She acknowledge that global tariff pressure are reshape trade and supply chain. But she say India must not respond by closing door, but by deepen internal capacity, diversify linkages, and double down on innovation, digital infrastructure, renewable energy and manufacturing. The aim is make India less vulnerable to external shock rather than isolated from world.

Still, Sitharaman warn against complacency. She said while India’s resilience is real, structural issue like logistic bottleneck, regulatory coordination, credit flow, and skill gap must address swift to avoid let adversity erode progress.

Financial market respond with cautious optimism. Some analyst note that U.S. tariff move could hit sector like textile, leather, chemical, and even electronic, but the strong domestic demand and government stimuli might cushion the blow. India’s foreign exchange reserve, banking sector health, and current account position all provide additional buffer.

For ordinary citizen, the promise of 8 percent growth mean more job creation, better service, and stronger public spending on health, education, and infrastructure. But it also mean the government must constant balance stimulus with fiscal prudence, inflation control, and sustainable debt level.

As India face volatile global environment, the Finance Minister message are clear: stay confident, be agile, and build strength from within. By doing so, India hope not only withstand external pressure but also chart a more self-reliant, inclusive growth path.

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