2025.08.2800:56:29UTC+00India July Economy Remains Stable, Impact of US Tariffs Still Limited

In July 2025, the Indian economy demonstrated stability amid global trade uncertainties. According to the Finance Ministry's Monthly Economic Review, robust domestic demand and solid macroeconomic fundamentals sustained growth. However, the report warned of increasing protectionist measures abroad, which are starting to impact India's trade prospects. It highlighted that global trade is already experiencing the adverse effects of heightened tariffs and policy uncertainties, which are suppressing business confidence. The Trade Policy Uncertainty Index saw a 17% increase, signaling heightened concern among companies and investors. India's exports of goods and services rose by 4.5% year-on-year in July, while imports increased by 6.1%, leading to a trade deficit of USD 11.7 billion, up from USD 10.1 billion in the previous year. The Finance Ministry advised caution, noting that although the immediate impact of US tariffs on Indian exports appears limited, the potential delayed effects need to be closely monitored, as they could affect both trade and overall economic growth.