As the August 27 deadline approaches for the US secondary tariffs of 25 percent on Russian oil purchases, analysts and global reports indicate that a total tariff of 50 percent is unlikely to have a significant effect on India’s growth, thanks to strong domestic demand. While the labour-intensive sectors such as textiles and gems and jewellery might experience a moderate impact, industries like pharmaceuticals, smartphones, and steel remain relatively protected due to exemptions, existing tariffs, and robust domestic consumption. S&P Global Ratings suggests that the macroeconomic effects of the tariff increase will be mitigated by the size of India’s domestic market.
