New Delhi India’s economy grew at a stronger pace than economists predicted in the latest quarter, offering a fresh boost to confidence in its growth trajectory but analysts warn that rising global trade barriers, especially U.S. tariffs, could complicate the road ahead.
Data released this week show the country’s GDP expanding at a rate that beat forecasts. That growth was powered by robust consumer demand, manufacturing activity, and steady government capital expenditure that helped sustain momentum even amid external headwinds.
Still, the economic picture isn’t entirely smooth. With steep duties imposed on several Indian exports by trading partners such as the U.S., many expect export-oriented sectors to feel pressure soon. Early gains from front-loaded shipments may fade — putting export revenues, jobs, and trade balance at risk.
Domestic consumption and infrastructure demand now play a critical role in offsetting these external risks. Government efforts to support the economy through favorable policies and spending seem to be helping — but sustaining growth will require balancing export challenges with internal demand and structural reforms.
As India moves forward, the key question remains: can strong domestic growth continue to compensate for weakening export demand? The answer will shape whether the nation maintains momentum or slows down under global pressure.
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