As we push forward with 2025, there have been many noteworthy amendments and policy changes that will direct the trajectory of the Indian economy going forward. Be it the changes we witnessed in Union Budget 2025 to US-tariffs, it is set to play a significant role in how we traverse the economic landscape of India.
If we look at Union Budget 2025, it has been more focused on strengthening the long-term sustainable growth through taxation, infrastructure, agriculture, and digitalisation. Adding to this, the revamped income slabs will offer more spending power to lower middle class personnel which will further aid in pushing India’s burgeoning economy. This positive economy is backed by the International Monetary Fund (IMF) who has said that India's robust economic performance presents a crucial opportunity to implement key structural reforms which will be critical for achieving its goal of becoming an advanced economy by 2047.
Furthermore, if we shift our focus on the U.S. President Donald Trump's tariff plans as he resumes his second presidential tenure, there is quite an uncertainty among the Indian players across varied industry verticals, especially who are into import and exports.
Furthermore, is important to note that the US has been India’s largest trade partner as of 2024, wherein, the bilateral trade between the US and the world’s most populous nation stands at USD 129.2 billion in 2024. With this, it would be interesting to see how the story unfolds as we go forward. India’s higher tariff rate and a USD 41 billion trade surplus with the US makes the South Asian nation among the most exposed to risks if Trump brings to light his plans to impose like-for-like tariffs. For instance, an average hike of 15-20 percent in tariffs could deteriorate India’s overall exports to the US by 3-3.5 percent.
Considering all these facets which can prove detrimental to India’s promising economic growth, Finance Outlook India delves into the crucial amendments and policy changes that we have witnessed in the early months of 2025. In this monthly edition, we will shed light on the Budget 2025 changes, effects of US-Tariffs and other notable moves that will play a pivotal role in paving the trajectory of the Indian economy.
