US Fed Delivers Third Rate Cut of 2025: What It Means for India’s Rates, Rupee, and FPI Flows
The United States imposed a significant 25% tariff on imports from India on July 30, 2025. It is considered to be a move that is projected to have wide-ranging implications for bilateral trade relations between US and India.
SGX Nifty, an early indicator of market sentiment for Indian investors, was trading in the red. It reflects a growing concern over the economic influence of the tariff’s increase by the United States today.
The increase in tariff comes when there is an ongoing trade discussion going on between India and the US. It would increase the cost of Indian exports to the US market.
It, therefore, affects industries including technology, pharmaceuticals, textiles, and engineering goods. These new trade barriers could disrupt supply chain, as a result profit margins for Indian exporters may get reduced, especially in the case of short term.
SGX Nifty saw a sharp decline after President Trump made an announcement about the tariff. There would be an expected volatility in the market when the trading session will resume tomorrow on July 31, 2025.
The preliminary market sentiment suggests that Indian stocks could open at a downward trend, with most of the sectors are dependent on exports. These sectors are anticipated to accept the brunt of the hike in tariff. This uncertainty with the long-term economic impact is likely to contribute to the market volatility in the coming weeks.
India’s government is expected to respond with countermeasures, as it has done in similar situations in the past. Analysts are closely watching for any statements from the Ministry of Commerce and Industry or the Ministry of Finance, which could provide further insights into India’s strategy in managing the fallout from the tariff increase.
Investors and Traders in the Indian market will need to keep a close eye on global cues and domestic policy announcements for the coming days in order to gauge the direction of the Indian stock market.
Also Read: US Imposes 25% Tariff On India: Will India Turn To Europe Amid New Free Trade Agreement With The UK?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
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