India can still meet the growth projection of 6.3% -6.8% for the tax year of 2025/26 that started on 1 April, despite the global disruptions of new American rates, if oil prices remain below $ 70 per barrel, said government officials, even because many private economists have reduced their predictions.
Economists, including Goldman Sachs, have reduced the growths of India with 20-40 basic points to 6.1% for the current financial year 2025/26, referring to the impact of the global rates imposed by US President Donald Trump.
A rate of 26% on Indian input, with even higher levies in other countries such as China, has escalated worldwide trade tensions, with large stock indices diving in Asia on Monday.
The diamond industry of India, which is sent to the US more than a third of the export, is expected to be one of the worst affected sectors, in which thousands of jobs are endangered.
Discussions are underway with ministries and associations of exporters to assess the Fallout, the officials said.
The Ministry of Finance has already received four to five proposals from the Ministry of Trade to support export industries, including an extension of the interest rate subsidy scheme, help for diversification and increased bank credit, a second official said.
“We are still studying the impact of tariff increases on the export sector and the decision can be made at the right time,” said the officer.
However, a third official of the Ministry of Finance said that the rates would not weigh heavily on the most important tax parameters of India for the 2025/26 years.
“We have already made provisions in the Budget for Remission schemes to help exporters and are open to more,” said the civil servant.
The officials spoke on condition of anonymity because they were not authorized to speak with the media.
The Ministry of Finance of India did not immediately respond to an e-mail request for comments.
India does not intend to take revenge against Trump’s rates, since officials are trying to negotiate a resolution, Reuters has reported.
Officials said that the impact of American rates on labor -intensive sectors such as textiles, shoes and agriculture was the greatest care of the government.
The government could increase support for exporters in the context of its export promotion scheme that was announced in the budget within tax limitations, the second officer said.
