Global headwinds are showing up in domestic numbers. The latest reports indicate India’s manufacturing sector slipped to a nine-month low, as higher US tariffs on Indian exports weighed on demand and led to production slowdowns.
This slowdown serves as a warning: while domestic demand and service sectors remain strong, external demand — especially export-driven manufacturing — is vulnerable to aggressive global protectionist measures. Sustained tariff pressure could dampen growth in export-heavy industries and require policy support or diversification of export markets.
