US tariffs won't derail India's growth: Fitch Solutions
Even with new US tariffs on some sectors, India's economy is set to keep growing strong—staying above 6% GDP growth through the 2020s.
That's according to a report from BMI, a Fitch Solutions company, which notes that upcoming GST reforms could help offset the impact of US tariffs.
BMI nudges down long-term growth outlook
BMI did nudge down its long-term growth outlook a bit: instead of the pre-pandemic average of 6.5%, they now expect just over 6% by 2030.
For the next couple of years (2025/26 and 2026/27), forecasts are at 5.8% and 5.4%.
Still, productivity gains are expected to help keep things steady.
Fitch keeps India's credit rating stable
The good news? Planned GST changes and income tax cuts might spark an extra ₹5.3 lakh crore in consumption—a nice bump for the economy.
Fitch also kept India's credit rating stable, saying tariffs probably won't do much long-term damage.
One of Asia's fastest-growing economies
Big picture: India is still set to be one of Asia's fastest-growing economies, thanks to strong local demand and ongoing reforms—even with external bumps like US tariffs in play.