India’s trade performance may suffer in the coming quarters due to the ongoing uncertainty over US President Donald Trump’s tariff policies, according to the South Asian nation’s finance ministry.
The global slowdown, particularly in the US, could dampen demand for India’s exports, the ministry said in its monthly economic report on Monday. “Continued uncertainty on the US tariff front may weigh on India’s trade performance in the coming quarters,” it added.
India and the US have been locked in negotiations for an interim trade agreement for months. While both sides have signaled an agreement is close, New Delhi has recently toughened its stance in negotiations, while Trump has threatened to hit countries like India and China with secondary sanctions for buying oil from Russia.
Still, India trade performance has remained “resilient” in the first quarter of the financial year that began in April, the report said. In addition to the US, India is exploring trade partnerships with several other nations, including New Zealand, Chile, and Peru, it said.