India's Economic Maestro: CEA Nageswaran Predicts Short-Lived Impact from Trump Tariffs

India's Chief Economic Advisor, V Anantha Nageswaran, recently shared an optimistic outlook regarding the lingering shadows of Trump-era tariffs on Indian steel and aluminium exports. He confidently predicted that their impact would be "short-lived," signalling an anticipated recalibration from the United States in response to evolving global economic dynamics.

The tariffs, specifically 25% on steel and 10% on aluminium, were initially slapped on by the Trump administration in 2018, primarily aimed at protecting domestic industries.

While they initially caused ripples, Nageswaran believes that the current global economic climate, particularly the persistent inflation within the United States, will inevitably prompt a re-evaluation of these protectionist measures. He articulated that for the US to effectively combat inflation, it would eventually need to consider easing import restrictions, making a policy shift highly probable.

Beyond the direct impact of these tariffs, Nageswaran highlighted India's inherent economic resilience.

He underscored that India's economy is not overly reliant on exports, but rather substantially driven by its robust domestic demand. This internal strength acts as a significant buffer against external shocks, ensuring that the nation's growth trajectory remains largely independent of fluctuating global trade policies.

Looking ahead, the CEA painted a positive picture for India's economic performance.

He pointed to various factors bolstering this optimism, including the government's strategic Production Linked Incentive (PLI) schemes designed to supercharge manufacturing and boost exports. Despite global headwinds such as the Ukraine war and persistent supply chain disruptions, India is projected to maintain a strong growth momentum in the coming years, positioning itself as a beacon of stability and opportunity.

Nageswaran's remarks offer a compelling perspective on India's strategic economic positioning, suggesting that while global trade politics may ebb and flow, the nation's fundamental strengths and adaptive policies are well-equipped to navigate and overcome transient challenges like the Trump-era tariffs, ultimately reinforcing its path towards sustained economic prosperity.