BS EDIT: Challenges Ahead: Trade Risks to India’s Growth

By Business StandardPublished On Sep 1, 2025

A Strong Start

India’s GDP grew 7.8% in April–June, the fastest in five quarters, beating RBI’s 6.5% projection

Sectors at Work

Agriculture picked up, manufacturing stayed firm, and services expanded faster, while construction slowed and mining contracted

Government Push

Higher public spending supported growth, with a quarter of annual capital outlay deployed in Q1

Trade Risks

Two-thirds of Indian exports face steep US tariffs. Prolonged barriers could hit jobs and demand

Domestic Pause

Consumers are delaying purchases ahead of GST rate cuts. The impact may be short-lived

Nominal Concerns

Nominal GDP rose just 8.8%. Low inflation may keep it subdued, straining fiscal targets