The Asian Development Bank (ADB) projects that India's economy will grow at a rate of 6.5% in FY26, a figure that reflects both resilience and underlying challenges. A significant concern is the anticipated impact of US tariffs on Indian exports, which are expected to dampen trade performance and, consequently, GDP growth. As these tariffs come into effect, they will not only reduce the volume of exports but also strain sectors heavily reliant on international markets, posing a risk to the overall economic trajectory. This situation underscores the need for strategic adjustments within India's export-oriented industries to mitigate the adverse effects of external trade policies.
To navigate these challenges, India must enhance its competitive edge through innovation and diversification of export markets. The ADB's forecast highlights the importance of addressing structural vulnerabilities while fostering domestic demand to sustain economic momentum. Policymakers are urged to implement measures that bolster resilience against external shocks, such as investing in technology and infrastructure, which can help offset the negative implications of tariffs. Ultimately, the ability to adapt to changing global trade dynamics will be crucial for maintaining growth and ensuring long-term economic stability.
