Indian economy: Will trade-shy India gain edge in tariff-driven slowdown?

India's trade detachment may cushion it as others scramble to adjust to Trump’s 90-day tariff pause.

British Broadcasting CorporationWatch LiveHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcastsRadioAudio FAQsVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveWeatherNewslettersWill trade-shy India gain edge in tariff-driven slowdown?17 hours agoShareSaveSoutik BiswasIndia correspondent•@soutikBBCShareSaveReutersIndia's trade detachment may help it ride out global shocks better than export-heavy economiesIndia is the world's fifth-largest and fastest-growing major economy.

Yet, a recent legacy of protectionism and inward-focused trade policies have held back its global competitiveness.

Its tariffs are high and the share of global exports remains under 2%. India's vast domestic market has fuelled its growth - outpacing many others, economists argue, largely because the rest of the world is slowing. But in a turbulent, increasingly protectionist era, India's instinct for self-reliance may oddly serve as a short-term shield.

As countries scramble to recalibrate in response to shifting US trade policies - like Donald Trump's latest 90-day tariff pause after weeks of sabre-rattling - India's relative detachment may have helped it weather shocks that have jolted more trade-dependent economies.

"India's lower exposure to global goods trade could work in our favour. If export-driven economies slow down under tariff pressure, and we continue growing at 6%, we'll start looking stronger by comparison - especially with our large domestic market to fall back on," says Rajeswari Sengupta, an associate professor of economics at Mumbai-based Indira Gandhi Institute of Development Research.

https://www.bbc.com/news/articles/cgrg2lq0gweo

---