<h1>US Tariffs on India May Have Limited Impact Due to Strong Domestic Economy and Services Export Resilience</h1> The proposed US reciprocal tariffs on India are expected to have a limited impact due to India's domestically-driven economy and substantial services exports, which are less likely to be targeted. S&P Global Ratings suggests that while countries with high trade surpluses with the US, like Vietnam and South Korea, may be more affected, India's reliance on domestic demand and services trade mitigates the impact. Sectors like textiles and chemicals could face higher tariffs, but pharmaceuticals are less likely to be affected. India's GDP growth is projected at 6.4% for 2024-25, with fiscal metrics remaining positive.