Mutual definitions that have a limited impact on India: World rankings agencies

It is not easy to make stakeholders a $ 4 trillion economy worried. But this is exactly what US President Donald Trump did by threatening mutual definitions. From Dalal Street to Mint Street Street, from management halls to policy passes, everyone is waiting for the surprises that Trump will get out of his possession on April 2.

India has one of the highest rates of medium tariffs in the world. According to the World Trade Organization (WTO), it was 12 percent in 2023-24 compared to 2.2 percent for the United States.

Trump, a prominent negotiator, for his part was accumulating pressure. His remarks about mutual definitions are repeated. And their sister on March 19 when in an interview with Breitbart News, he said: “I think India may significantly reduce these definitions, but on April 2, we will charge them with the same definitions they receive for us.”

Below is a look at what global agencies say about the effect of Trump’s mutual tariff on India.

S & P Global: India is protected

S & P Global Ratings, which says the strong economy and low exposure to the United States protects India from the effects of Trump’s tariff. These definitions are likely to have an indirectly limited impact as the export sector in India is slightly more than ten domestic product.

However, there can be disturbance in some sectors. “The exposure of low India in the United States reduces the risk of customs tariffs, but the indirect effects, such as the re -commercial guidance to the country, can reach steel and chemical sectors,” S&P said in a report.

The classification agency added that most of the classified Indian companies can stand up to the slowdown of temporary profits.

Fitch: India is somewhat isolated

Fitch maintained its 6.5 percent drop off the GDP of India in 2025-26. However, it warns that the most aggressive American commercial policies are expected “may pose a great risk to growth expectations.

According to Fitch, “Work confidence remains high and lending surveys indicate a two -digit -lending growth for the private sector,” adding that India is somewhat isolated from American tariff procedures “given the low dependence on external demand.”

MOODY’s: Sector Effect

Moody classifications said in a report that companies in the auto, steel, chemical and business services sectors in South and Southeast Asia are subjected to American definitions of the United States, which may reduce demand and increase costs. However, sectors such as mining, oil, gas, shipping, and holding companies for investment, protein and agriculture are the most appropriate to withstand the effect. The hidden includes strong local operations, various supply chains and American operations.

When it comes to solid and chemical companies, the tariff measures proposed by the United States will have a little direct impact, but they will transform surplus steel and petrochemicals into other markets, including Asia, in addition to the already high supply in the region, the report said. This would weaken prices and thus reduce the profitability of these companies.

IT companies are in a better position to accommodate the increasing costs. According to the agency, although it is not directly subject to a tariff, business service providers are subject to changes in the American immigration policy, which may reduce the talent group for companies operating in the United States that depend on foreign workers.

MOOODY’s also says that Relination Industries, which emit about half of its production from the oil to chemical sector, is likely to be indirectly exposed to trade restrictions between countries. However, the strong public budget of the company is seen and absorbs the potential decreases in demand or profits.

The negative impact on growth

Meanwhile, Goldman Sachs expected that he would get the Indian GDP from 10-60 barrels per second from the Trump tariff. “The total exports of India to the United States is one of its lowest peers in the emerging market in about 2.0 % of GDP. However, in the case of global customs tariffs on all countries of the United States, exposure to India in local activity in the final demand in the United States will be almost twice at the level of the manufactured forces through emotion.

There are three ways that the United States can impose a tariff on India-on all products imported from India according to the average definition teams, by matching the customs tariffs in India on each product, or using unbearable barriers such as administrative barriers, import licensing, etc.