India may still achieve its projected economic growth of 6.3% to 6.8% in the 2025/26 fiscal year despite global uncertainty following new US tariff measures, government officials said on Monday.
The optimism comes even as private forecasts, including from Goldman Sachs, have revised growth estimates down by 20 to 40 basis points, placing India’s likely expansion at around 6.1% for the year.
The revision follows US President Donald Trump’s recent 26% tariff hike on Indian imports, which intensified global trade tensions and triggered market sell-offs across Asia.
India’s diamond sector, which sends more than a third of its exports to the United States, is expected to suffer significantly. Concerns are also rising over the likely impact on other labor-intensive sectors such as textiles, footwear, and agriculture.
In response, the government is evaluating proposals to support affected industries. The commerce ministry has submitted several suggestions, including interest subsidies, credit support, and export diversification strategies.
While a formal decision is pending, finance ministry officials said existing budget allocations include export incentive provisions and further support may be extended if needed.
India has no immediate plans to retaliate against the US tariffs, focusing instead on diplomatic engagement.
