The Global Trade Map Is Redrawing—India’s Already Marked Its Spot

While much of the world is bracing for more trade trouble, India seems to be navigating the noise with some confidence. According to SBI Capital Markets’ latest report, India’s strong domestic demand, lower export exposure, and policy support are helping it stay on course even as tariff fights and global slowdowns pick up.

 

The recent 27% U.S. tariff shock may have spooked markets, but India wasn’t hit too hard. The tariff was later eased for Indian goods, and more importantly, India doesn’t rely heavily on exports to begin with. That buffer gave the country time to breathe.

 

What’s really working in India’s favor is its internal momentum. GDP growth came in at a solid 6.5% for FY25. Government spending is up, GST collections are healthy, and infrastructure projects are moving. All of that is keeping domestic demand strong.

At the same time, India’s stepping up its global game—forming trade deals with Australia and the UAE, and in talks with the UK and EU. It’s a pivot toward smaller, more focused partnerships as the world moves away from big multilateral trade deals.

 

Ratings agencies like Moody’s also point out that many Indian firms are protected from tariff shocks, simply because they’re more locally focused. Export-driven sectors might feel some strain, but overall, the picture is stable.

In short, while the world plays defense, India’s keeping its eye on the ball.

 

Sources: LiveMint, BusinessWorld, MSN.