Domestic consumption, GST reforms cushion US tariff impact
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New Delhi: The potential impact of US tariffs has been cushioned by India's strong domestic fundamentals, robust domestic consumption and GST 2.0 reforms, a report said on Wednesday.
GST reforms and front-loading of rate cuts by RBI will be supportive of India's equity market growth and would help cushion it from external shocks, the report from Bank of Baroda said. Sensex grew by $66.5 billion in market capitalisation during 2025, despite the US tariff on Indian imports. Markets have accounted for tariff uncertainty and are now focussing on underlying economic fundamentals, the analysts said. The report noted that India was among the four countries, alongside Hong Kong, Brazil and China, that gave positive returns from January to April period after US President Trump started announcing tariffs.
