The report comes a day after the US imposed a 50% tariff on imports from India, elevating issues over exports and capital formation within the close to time period.
“If near-term financial ache is absorbed extra by those that have the power and monetary energy to take action, then small and medium enterprises in downstream industries will emerge stronger from commerce imbroglio. Now could be the time to reveal an understanding of nationwide curiosity,” the report stated.
The ministry famous that India's sturdy macroeconomic fundamentals proceed to bolster the financial system's resilience. Current coverage initiatives—together with the formation of a job drive for next-generation reforms, forthcoming GST reforms, state-level deregulation measures, and the sovereign score improve—are anticipated to cut back borrowing prices, entice overseas capital, and assist each funding and consumption.
“These reforms mark the start of an accelerated part of governance transformation, making certain that India extends its personal line of progress, turns into extra resilient, inclusive and globally aggressive in an period of rising world financial self-interest,” the report added.
Whereas the rapid influence of the US tariffs on Indian exports could seem restricted, the finance ministry cautioned that secondary and tertiary results on the broader financial system may very well be important. On this context, ongoing India-US commerce negotiations are anticipated to be essential.The report additionally highlighted the deliberate rollout of next-generation GST reforms within the coming months, with a deal with lowering the tax burden on important gadgets. These measures are anticipated to offer direct aid to households and bolster consumption demand.
With inputs from TOI
