New Delhi, September 10 (IANS). India’s economy is demonstrating strong domestic consumption and strength on government spending despite global trade and fiscal uncertainty. This information was given in a latest report.
According to a report by SBI Capital Market, Indian markets remain strong, although the US aggressive tariff system has become a serious issue globally.
According to the report, “India’s GDP growth was better than average in the first quarter of FY 2026. It is believed that the high tariffs on India are necessary to promote domestic consumption, amid global challenges, domestic consumption. GST reform in this regard is a welcome step.”
The report further stated that an American appeal court verdict termed Tariff as unconstitutional, after which the matter reached the Supreme Court. Until clarity comes, business policy will remain instability, in which auto, electronics and textile areas will remain under major pressure.
The report states that Indian exporters are facing up to 50 percent recipes, which is increasing the cost pressure. Uncertainty is affecting business flow and margin.
The report said, “Despite the weak US dollar, the Indian rupee has reached a record low, which is nearly 5 percent below the annual basis. RBI has limited the intervention.”
It further states, “Capital flow remains slow, while the current account remains manageable despite weak trade exports due to tariff pressures.”
The research wing said that the GDP growth rate of India’s first quarter has reached 7.8 percent and the government’s decision to simplify the GST structure is expected to bring about Rs 50,000 crore in the economy, which will boost domestic consumption.
SBI Capital Markets said that fiscal stress in the US and Britain is complicating global trade stress, as the bond yield curve has increased further due to increasing debt burden.
The research wing said, “Meanwhile, weak employment data in the US has increased the possibility of cutting interest rates in the September policy review.”
-IANS
SKT/
