Trump’s tariff – the government stands alongside budget estimates despite the geopolitical opposite winds: the Ministry of Finance official

Despite the opposite geopolitical winds, the Ministry of Finance is still confident that the growth of the gross domestic product of India will remain within the expected range of 6.3-6.8 percent for the fiscal year 26, according to the ministry’s sources that told Business TV.

The current challenges described it as a “temporary setback”, officials are optimistic that the upcoming bilateral trade negotiations with the United States will help reduce the effect.

While the government admitted that the customs tariff can reduce demand, it still hopes that global energy prices and tax discounts in the United States will help compensate for effect.

When asked about the potential incentives of industries affected by the decline in exports, the official pointed out that small and medium companies are the most affected, because they lack the ability to absorb losses, while major companies can maintain pressure for some time. Although there are no immediate relief measures, the government will meet exporters soon to assess their concerns.

The government’s confidence also stems from Capex’s expectations. Although a sharp decrease in the use of capital expenditures in the first half of the fiscal year 25, it is expected that the revised CAPEX goal of 10.18 rupees will exceed the fiscal year. The target of 11.1 rupees was revised in the Federation’s budget 2025-26. For the fiscal year 26, the government allocated 11.21 Cham rupees in the field of capital spending.

“The tax cuts announced in the budget and the increase of Capex will help us in the 26th fiscal year”, a responsible subscriber, enhances government optimism in maintaining economic momentum.

The economic survey, which was put on parliament on January 31, expected the growth of GDP of India at 6.3-6 % in the 26th fiscal year.