India’s Economy Defies Global Tariff Pressures, Growth Outlook Remains Strong

With the US tariff pressure at its peak, investors and businesses are worried about a slowing economy. However, in the economic report for September 2025, the Finance Ministry has busted this belief and said that India’s growth outlook is resilient for the current fiscal year. The government has made it clear that there is no slowing down in India’s economic growth process as domestic demand has been pulling it all the way up, and the easing inflation numbers are playing as a catalyst in the scenario. 

It also commented that the GST 2.0 has made the entire economy breathe freely as demand has been surging following the GST rate cuts implemented under the GST 2.0 regime. 

What about commodity prices?

As per the report, the prices of the commodities are anticipated to stay within limits for this financial year as food production is on track. The food supply market looks positive and without any shortage, even when there is less production of oilseeds and cash crops this year due to weather issues. 

Trade Diversification Playing a Pivotal Role 

One of the biggest reasons behind the resilient Indian economy amidst all foreign pressure is the trade diversification strategy it has adopted. India now exports to more nations compared to earlier numbers, which has broadened its network, and demand has also increased. As the US-India Trade deal is still under scrutiny, diversification in export destinations is helping Indian businesses thrive, as per the September 2025 report. 

As the US government has been continuously threatening the entire South Asian region for importing oil from Russia, and thus a 50% punitive tariff rate imposition sword is hanging on top of these nations. India’s export to the US has also been affected by around 55% as US tariffs on Indian exports increase. However, with the trade diversification, India has placed itself in a good position for negotiations. 

Commenting on the bilateral trade talks with the US, the Trade Minister Piyush Goyal said something similar recently that the country would not bow down to any threats from the US and would not accept any limits on its trading choices. 

Final thoughts 

As the festive season has also kicked it, it is expected that the demand will surge in October, and the economy will boom further. However, the US-India trade deal is still a constraint, but the domestic factors like easing inflation, GST cuts are supporting the domestic demand, which is growing significantly, making India’s growth outlook positive. 

Source: CNBCTV18

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