New Delhi, Aug 13
The new US tariffs announced by President Donald Trump will not hurt India’s economic growth or affect its positive sovereign rating outlook, S&P Global Ratings said on Wednesday.
In May last year, S&P had upgraded its outlook on India’s sovereign rating of ‘BBB-’ to positive -- citing strong and steady economic growth.
Speaking at a webinar on Asia-Pacific Sovereign Ratings, S&P Global Ratings Director YeeFarn Phua said India will not be impacted much because it is not a trade-driven economy.
He explained that India’s exports to the US account for only about 2 per cent of its GDP.
He also noted that major export sectors such as pharmaceuticals and consumer electronics are exempt from these tariffs.
He said India’s growing middle class is a big attraction for investors. The US is currently India’s largest trading partner.
In 2024-25, bilateral trade between the two countries stood at USD 186 billion. India exported goods worth USD 86.5 billion to the US, while imports were valued at USD 45.3 billion.
India also maintained a trade surplus with the US of USD 41 billion during the year.