India’s export growth has softened in the current fiscal year due to global tariff-related developments that have raised trade risks and affected investments and trade flows, the government said in its February economic report on Wednesday.
Uncertainties around trade policies, geopolitical tensions, and volatile commodity prices pose significant risks to next year’s growth outlook, the government said, while retaining its growth estimate for the fiscal year 2024/2025 at 6.5%.
India’s financial year runs from April through March.
The comments come as the South Asian nation engages in talks with the United States to mitigate the impact of President Donald Trump’s reciprocal worldwide tariffs, set to take effect from April 2.
India’s good exports remained flat between April to February, compared to a similar period in the previous year, as per latest government data.
The world’s fifth-largest economy expanded by 6.2% in October-December, picking up on increased government and consumer spending, but the overall rise was well below peak quarterly growth rates seen in years after the pandemic.
High-frequency indicators of economic activity suggest improved growth momentum in the January-March quarter, the government said, adding pressure on inflation, including food, is easing.