Swiss Bank Bonhote: The impact of US tariffs on India's economic growth may be limited.

Magdalene Teo, fixed income analyst at Bank Pictet, Switzerland, said that the impact of the 25% tariffs imposed by the United States on Indian economic growth should be limited. Considering that the Indian economy is relatively closed and growth is mainly driven by domestic demand, it is expected that the tariffs will cause a decrease of about 15-40 basis points in India's fiscal year economic growth rate. Higher than expected tariffs may weaken India's competitiveness in exports of jewelry, pharmaceuticals, textiles, electronics, and refining. Against the backdrop of a gloomy market sentiment and increased uncertainty, inflows of capital and investment may weaken, dragging down economic growth. She added that although low inflation provides room for rate cuts, the Reserve Bank of India may keep rates unchanged this month and choose to make dovish statements in the case of a weak rupee.