“Private Capex, the second round effect on domestic production and labor markets may arise as a key risk in the coming months,” HDFC Bank’s chief economist, “Private Capex, domestic production and labor markets.” He said.
Gupta pointed out that their recruitment intention remained widely silent in the first quarter of the Curent Fiscal Year.
“The implications of the labor market can be seen in sectors such as jewelery and jewelery, textiles, leather and shoes.”
India’s unemployment rate was 5.6% in June, rural and urban unemployed rates were 4.9% and 7.1%, respectively.
The US brought 25% more tariffs to India due to oil purchases from Russia. Last week, President Donald Trump announced 25% tariff in the country. The new tariff of 50 % will be valid as of August 27th.
“This is not a good news, because the total rate will be one of the highest rates imposed by the United States. The clue is to negotiate with the government soon.” He said.
He pointed out that the difficulty of difficulty in exports and the higher import invoice on oil and pointed out that the latter would have other macroeconomic consequences.
Experts warn that if the tariffs are not reduced, India’s gross domestic product (GDP) can take a blow.
IDFC First Bank’s chief economist Gaura Sengupta estimated that 50% tariff will lead to 26 GDP growth by 0.4%.
Gupta from HDFC Bank, “26 fiscal year GDP growth forecast below 6%, and we will cook at least 40-50 bps hits from our previous estimates,” he said.
Economists, in terms of market, said the announcement is likely to increase the pressure on the RUPI.
