New Delhi, April 3 || The PHD Chamber of Commerce and Industry (PHDCCI) on Thursday said that owing to India’s price competitiveness and supportive government policies, it expects GDP to see only a marginal 0.1 per cent impact amid the recently announced US reciprocal tariffs.
Strong domestic manufacturing, continued government handholding by strategic policy measures including production-linked incentive (PLI) schemes, ‘Make in India’ and ‘Atmanirbhar Bharat’, among others, will support India’s growth resilience, PHDCCI President Hemant Jain said.
The industry chamber expected continuing collaboration with the US through a well-negotiated bilateral trade agreement (BTA) that is likely to come into effect in fall 2025.
"India’s robust industrial competitiveness will balance the impact of US tariff announcements and GDP will see only a 0.1 per cent impact in the short term," said Jain, adding that in the medium term, as the policy takes full effect, this shortfall will be negated.
The transition to strengthening domestic consumption will easily absorb the tariff impact. India’s robust demand augurs well for sectors such as electronics, renewable energy, and pharmaceuticals, among others.