Chief Economic Adviser (CEA) V. Anantha Nageswaran on Friday reaffirmed confidence in India’s growth trajectory despite tariff-related headwinds from the United States, citing robust domestic consumption as the key buffer. He said the government has not revised the GDP growth outlook for 2025-26, keeping it in the 6.3–6.8 per cent range.

The United States’ decision to impose an additional 25 per cent tariff on Indian goods — a penalty for New Delhi’s continued imports of Russian oil and weapons — has triggered alarm among exporters. The levy, which came into effect Wednesday, doubles the existing duties and threatens to undercut India’s access to its largest export market.

India shipped goods and services worth $86.5 billion to the US in FY25, with nearly two-thirds of that now subject to higher tariffs. According to the Federation of Indian Export Organisations (FIEO), the impact will be devastating, with $48 billion worth of shipments facing a 35 per cent pricing disadvantage against competitors from Vietnam, Bangladesh, and China, who face lower barriers.

FIEO President S.C. Ralhan pointed to sharp disruptions in textile hubs such as Tirupur, where production has already halted. Shrimp exporters, who depend on the US for 40 per cent of their market, are also bracing for steep losses. Industries such as leather, ceramics, handicrafts, and gems are seen as equally vulnerable.

Ralhan urged the government to provide relief through a moratorium on loan repayments and enhanced support for exporters. He also called for a fast-tracking of trade agreements to diversify India’s markets.

The Global Trade Research Initiative (GTRI) warned exports could plunge by 43 per cent in FY26 to below $50 billion, shaving nearly 1 per cent off India’s GDP. Government estimates earlier suggested a smaller impact of 0.2 per cent, but those projections are now outdated.

Meanwhile, a State Bank of India report noted the tariffs could backfire on Washington, raising input costs and shaving 40-50 basis points off US GDP.

Prime Minister Narendra Modi has maintained India will not compromise farmers’ interests, even as prospects of a $500 billion trade deal remain uncertain.

Major US retailers including Walmart, Amazon, Target, and Gapv have suspended apparel and textile orders from India after US President Donald Trump imposed a steep 50% tariff on Indian goods. Exporters say they have received letters and emails from US buyers asking them to halt shipments until further notice, as the buyers refuse to share the cost burden, pushing Indian suppliers to absorb the tariff hit.

The move is expected to raise costs by 30–35% and may slash US-bound orders by 40–50%, translating to an estimated $4–5 billion loss. Major exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident, which derive 40–70% of their sales from the US, are among those most affected. The United States remains India’s largest textile and apparel export market, accounting for 28% of the industry’s $36.61 billion exports in FY 2024–25.

India now fears losing orders to competitors such as Bangladesh and Vietnam, which face a lower 20% tariff. The new tariff includes a 25% duty already in force and another 25% set to take effect on August 28, imposed as a penalty for India’s continued purchase of Russian oil.

In an executive order, Trump said the additional duty was “necessary and appropriate” given India’s oil imports from Russia. In response, India called the move “unfair, unjustified, and unreasonable,” stressing that such imports are driven by market realities and the need to ensure energy security for 1.4 billion citizens.

The Ministry of External Affairs pointed out that other countries including the US and EU continue substantial trade with Russia, importing energy and critical commodities. It noted that Washington once encouraged India’s Russian oil imports to stabilise global markets. India has vowed to take “all necessary measures” to safeguard its national interests and economic security.

Tesla has officially launched its first offering in India — the Model Y, available in two rear-wheel-drive (RWD) variants: Standard RWD and Long-Range RWD. Priced at ?59.89 lakh and ?67.89 lakh respectively (ex-showroom), the on-road prices rise to ?61.07 lakh and ?69.15 lakh. These figures include an “Administration and Service Fee” of ?50,000, inclusive of 18% GST, as detailed on Tesla’s official website.

Indian buyers can also personalise their Model Y with a host of add-ons. For instance, opting for Full Self-Driving (FSD) capability will cost an additional ?6 lakh. Various colour choices and interior trims further contribute to customisation.

The Indian Model Y RWD variant is offered with a choice between a 60 kWh and a larger 75 kWh battery pack. The single electric motor churns out around 295 horsepower. Tesla claims a WLTP-certified range of 500 km for the 60 kWh version, while the long-range model offers up to 622 km on a full charge.

Globally, the Model Y starts at approximately ?38.63 lakh in the U.S., ?31.57 lakh in China, and ?46.09 lakh in Germany. This makes the Indian pricing among the highest worldwide, primarily due to steep import duties and associated logistics costs.

Feature-wise, the Model Y for India comes well-equipped with a 15.4-inch front infotainment screen, an 8-inch rear display, power-adjustable front seats and steering column, dual-zone climate control, 19-inch crossflow alloy wheels, a panoramic fixed glass roof, and a power rear liftgate. Buyers can choose from seven exterior colour options and two interior themes, offering a blend of tech and comfort.

Tesla’s much-anticipated entry signals a bold start in India’s premium EV segment.

Equity benchmark indices extended their rally for the fourth consecutive session on Friday, buoyed by strong gains in blue-chip stocks like ICICI Bank and Reliance Industries, along with fresh foreign fund inflows. Improved global sentiment, a firm rupee, and declining crude oil prices added to the upbeat mood.

In a significant move to boost economic activity, the Reserve Bank of India (RBI) has reduced the key repo rate by 50 basis points to 5.5%, following a unanimous decision at the Monetary Policy Committee (MPC) meeting held from June 4–6, chaired by RBI Governor Sanjay Malhotra. This marks the second consecutive rate cut in two months, aimed at making borrowing cheaper as inflation continues to ease.

Indian equity markets plunged sharply on Monday, triggered by renewed trade tensions after former U.S. President Donald Trump announced plans to double tariffs on steel and aluminium imports. The benchmark BSE Sensex fell over 700 points in early trade, while the NSE Nifty slipped by more than 200 points, reflecting widespread investor anxiety during an already volatile earnings season.

India has overtaken China as the leading exporter of iPhones to the United States, shipping nearly three million units in April, according to a report by market research firm Omdia. In stark contrast, shipments from China plunged 76% to just 900,000 units, signaling a major shift in Apple’s global supply chain strategy.

Domestic equity benchmarks opened on a strong note today, buoyed by positive sentiment following India’s climb to the position of the world’s fourth-largest economy. At 9:32 am, the Sensex surged 640.3 points or 0.78% to 82,361.46, while the Nifty rose 187.39 points or 0.75% to 25,040.45.

Broad-based gains were seen across sectors. The Nifty Bank index advanced 408.25 points to 55,806.50. The Nifty Midcap 100 added 426.60 points to 57,114.35, and the Nifty Smallcap 100 rose 145.90 points to 17,789.25.

Analysts noted that India’s rise in global economic rankings has provided a sentiment boost to investors. Additionally, the Reserve Bank of India's larger-than-expected dividend payout to the government is expected to aid in containing the fiscal deficit within the 4.4% target for FY26.

“This development supports the ongoing low inflation trend and expectations of a rate cut cycle, which are favourable for equities,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He also pointed out that while foreign institutional investors (FIIs) showed strong buying earlier in May, recent flows have turned unpredictable.

Among the top Sensex gainers were M&M, PowerGrid, NTPC, Tata Motors, ICICI Bank, and Tech Mahindra. Eternal was the sole stock trading in the red.

Asian markets showed a mixed trend: Tokyo, Seoul, and Bangkok traded higher, while Hong Kong, Jakarta, and Shanghai were in the red. On Wall Street, major indices closed lower in the previous session.

FIIs were net buyers on May 23 with inflows of ?1,794.59 crore, while DIIs added ?299.78 crore. Market focus this week will remain on India’s GDP figures, US Fed minutes, and key inflation data.

India’s economy is poised to grow at 6.5% in the current fiscal year, supported by a robust domestic foundation and rising investment momentum, Confederation of Indian Industry (CII) President Sanjiv Puri said in a recent interview. He asserted that despite ongoing global geopolitical tensions, India remains resilient and well-positioned to weather short-term shocks.

“The fundamentals are strong—interest rates have eased, inflation is moderating, and personal income tax concessions that kicked in from April 1 will bolster consumption,” Puri said, adding that private investment is gaining traction across sectors such as energy, transportation, metals, chemicals, and hospitality.

While acknowledging the cautious sentiment triggered by geopolitical uncertainties, including trade tensions and conflicts, Puri stressed the importance of focusing on long-term growth strategies. “The economy is entering the year with a strong base, and this provides us the confidence that 6.5% growth is achievable,” he said.

Addressing the rising trend of global protectionism, Puri advocated for pursuing bilateral trade agreements with key partners like the United States and the European Union. “More and more barriers to trade are coming in. Bilateral pacts that align with national interests can ensure sustained access to global markets,” he explained.

He also proposed a three-tier tariff framework to boost competitiveness and support domestic industries. “It’s vital that we press hard on domestic growth drivers—agriculture, climate adaptation, and structural reforms,” Puri said.

On consumption trends, Puri noted that rural demand is beginning to recover, and urban consumption is expected to pick up in the coming quarters. He expressed hope for further interest rate cuts to stimulate demand and investment.

“In the face of global uncertainty, India’s path forward lies in building internal resilience and strategic international engagement,” he concluded.