Why Indian stock market is unfazed by US-China trade war

Business Aug 07, 2025

Even after the US slapped 25% and then 50% tariffs on Indian imports, India's stock market held its ground.
The Sensex and Nifty dropped at first but bounced back quickly, with traders hoping for talks to ease tensions.
By the end of the day, losses were much smaller than expected.

Why no panic in India

Turns out, exports to the US are just a tiny slice—about 2%—of India's economy. Plus, IT services (a big deal for India) weren't hit by these tariffs.
Experts say some industries linked closely to the US might feel a pinch, but strong farm prospects and steady spending at home keep things upbeat.
The Reserve Bank also expects solid growth ahead and falling inflation, which is good news for anyone watching investments or jobs.