The strength and resilience of the Indian economy are underpinned by a slew of factors, including its large and vibrant customer base and robust macroeconomic fundamentals. The government is also developing a strategic framework to mitigate the adverse economic impacts and enhance India’s export competitiveness.

India's economy could reach USD 20.7 trillion in terms of purchasing power parity (PPP) by 2030 and may emerge as the second-largest economy by 2038 with USD 34.2 trillion GDP, an EY report said on Wednesday.

Industry bodies say US 50% tariff on Indian goods is both a challenge and an opportunity, with reforms, FTAs and diversification strengthening India’s trade role.

Trump imposes 25% tariff on India imports over Russian oil purchases, pushing some duties to 50% as retaliation for New Delhi's discounted crude imports.

Officials have warned the new duties could make shipments to the U.S. commercially unviable, triggering job losses and slower economic growth.

US Treasury Secretary Scott Bessent voiced optimism on Wednesday that Washington and New Delhi can overcome trade frictions despite steep tariffs and policy disputes. He stressed that strong strategic and economic ties make a mutually beneficial agreement likely in the near term.

“Among the largest economies, India stands out with a median age of 28.8 years in 2025, the second-highest savings rate, and a government debt-to-GDP ratio projected to decline from 81.3% in 2024 to 75.8% by 2030 unlike peers where debt levels are rising,” the EY report noted.

Among the largest economies, India stands out with a median age of 28.8 years in 2025, the second-highest savings rate, and a government debt-to-GDP ratio projected to decline from 81.3% in 2024 to 75.