New Delhi, 30 September (IANS). Despite the global uncertainties such as tariffs and geopolitical stress, the credit profile of Indian companies has performed firmly. This information was given in a report on Tuesday.
The domestic-focused nature of the Indian economy is likely to reduce the widespread macro effects of America’s high tariffs.
ICRA Ratings said in its report, “GST improvement, income tax relief, interest rate cuts and decrease in food inflation are likely to promote domestic consumption, which will help urban demand specifically.”
A large challenge has arisen for areas such as exporters of sectors such as cut and polish diamond (CPD), textiles and seafoods, depending on the US market, by imposing a huge tariff of 50 per cent on exports to the US from India.
ICRA Executive Vice President and Chief Rating Officer K.K. Ravichandran said, “In view of these positive domestic trends, the ICRA has increased its estimate of GDP growth for FY 26 to 6.5 percent, which will help reduce the negative effects of America’s tariffs.”
The ICRA improved the rating of 214 companies in the first half of FY 26 and declined the rating of 75, giving a strong credits of 2.9 times.
This improvement in rating was observed due to improvement in company-specific factors such as business fundamentals, strong credit profiles of the parent company and a decrease in project risk in the power-road sector.
According to the report, India has a risk for merchandise trade from 50 percent tariff imposed by the US. Since the United States is about 20 percent of India’s total exports and 50-60 percent of it is now in danger, if the tariff is increased by March 2026, business exports in FY 26 may decline by about 4-5 percent.
Ravichandran further said, “Despite external challenges, its impact on the domestic economy is expected to be limited, as India’s economy is dependent on domestic demand and is only 2 percent of the export GDP to the US.”
-IANS
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