New Delhi, Sep 17 || India’s economy is set to grow faster at 6.5 per cent in FY2026, up from the previous expectation of 6 per cent, due to GST reforms that will cushion the blow from steep US import tariffs, a report said on Wednesday.
Credit rating agency ICRA also said in the report that proactive strategies from industries, trade rerouting and geographic diversification could help India weather the tariff shock.
The ratings agency, however, maintained that the high tariff burden is likely to weigh on sectoral profitability and demand across several industries.
India ships more than 140 product categories to the US, making the market critical for sectors ranging from auto components to seafood, the report said.
While the high US tariffs are expected to pressure margins and demand in FY2026, industry responses and policy support are helping limit immediate damage, the report noted.