Mint Quick Edit | India’s economy is resilient in the face of headwinds
In the face of new US tariffs, uncertainty over higher trade barriers and signs of stagnant domestic consumer demand, India’s economy broadly seems to be holding up well.
The Reserve Bank of India’s State of the Economy report captures its resilience.
Credit for this is due to plentiful rainfall, which has brightened farm prospects, a robust services sector and industrial activity that has been uneven but growth-supportive.
Separately, the Asian Development Bank has forecast India’s economic growth at 6.5% in 2025-26.
Though this is a tad lower than its April forecast, it’s still good under the current circumstances.
It makes India stand out among the world’s big economies.
That said, the months ahead could see turbulence if New Delhi’s trade negotiations with Washington do not deliver on expectations.
With America’s 1 August deadline for extra tariffs nearing, the chance of a quick trade deal look bleak.
That parleys have dragged on suggests several sticky points.
India’s government has rightly stated that it would brook no compromise of Indian interests.
What exactly this means can be debated, but we should perhaps brace for some disappointment .
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