US tariffs not to hit India's growth: S&P

NEW DELHI: Trump tariffs will not have any impact on India's growth, as it is not a trade-oriented economy, and its sovereign ratings outlook will continue to remain positive, S&P Global Ratings director YeeFarn Phua said.

In May last year, S&P had upgraded the outlook on India's sovereign rating of 'BBB-' to positive, citing robust economic growth. On Aug 6, US President Donald Trump announced an additional 25% tariff on all Indian imports, on top of an existing 25% duty, taking the total to 50% from Aug 27.

YeeFarn said, "I don't think the tariffs imposed on India will have an impact in terms of economic growth, largely because India is not a very trade-oriented economy. And if you look at India's exposure to the US in terms of exports to GDP, it is just about 2%."