India’s export growth has slowed in the current fiscal year due to global tariff-related issues, which have increased trade risks and impacted investments and trade flows, according to the government’s February economic report released on Wednesday.
The government also highlighted that uncertainties around trade policies, geopolitical tensions, and fluctuating commodity prices present significant risks to growth projections for the next fiscal year, although it maintained its growth forecast for 2024/2025 at 6.5%.
India’s financial year runs from April to March.
These remarks come as India holds discussions with the United States to address the impact of President Donald Trump’s reciprocal global tariffs, which are set to take effect on April 2.
Data from the government shows that India’s goods exports were flat between April and February, compared to the same period last year.
The world’s fifth-largest economy grew by 6.2% in the October-December quarter, boosted by higher government and consumer spending, though the overall growth was lower than the peak quarterly growth rates seen in the years following the pandemic.
High-frequency economic activity indicators suggest improved growth momentum for the January-March quarter, with the government noting that inflationary pressures, particularly on food, are easing.
