New Delhi: Trump tariffs will not have any impact on India’s growth, as it is not a trade-oriented economy, and its sovereign ratings outlook will continue to remain positive, S&P Global Ratings Director YeeFarn Phua said on Wednesday. In May last year, S&P had upgraded the outlook on India’s sovereign rating of ‘BBB-’ to positive, citing robust economic growth.

On August 6, US President Donald Trump announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27. The White House said the measure responds to India’s continued purchase of Russian oil. Replying to a query on whether the tariff imposition poses downside risks to the positive outlook on India, YeeFarn said: “I don’t think the tariffs imposed on India will have an impact in terms of economic growth, largely because India is not a very trade-oriented economy.

And if you look at India’s exposure to the US in terms of exports to GDP, it is just about 2 per cent”.