Huge domestic mkt will cushion India from US tariff impact: Fitch

Highlights

New Delhi: The large size of India’s domestic market, which reduces reliance on external demand, is expected to insulate the country from the US...

New Delhi: The large size of India’s domestic market, which reduces reliance on external demand, is expected to insulate the country from the US tariff hike, with the economy expected to maintain a growth of 6.5 per cent in FY26, global ratings agency Fitch said on Wednesday.

The ratings agency kept India’s FY26 forecast unchanged at 6.5 per cent while projecting a higher 6.3 per cent growth for FY27, up from 6.2 per cent in its December update.Fitch’s forecast is an improvement on OECD, which expects 6.4 per cent growth in FY26 but lower than the Reserve Bank of India’s projection of 6.7 percent.

A recent Morgan Stanley report had also stated that India is the “best placed country in Asia,” amid the global uncertainty triggered by US President Donald Trump’s threat to jack up tariffs, because of the nation’s low goods exports to GDP ratio and strong fundamentals.