India's GDP to take only 0.1% hit from Trump tariff thanks to 'aatmanirbharta': PHDCCI

PHD Chamber of Commerce and Industry (PHDCCI).
The industry body attributed this limited impact to India’s growing domestic manufacturing strength and the government's strategic policies, particularly those under the "Aatmanirbhar Bharat" initiative.

Hemant Jain, President of PHDCCI, highlighted that India's robust industrial competitiveness and supportive government policies, including the Production-Linked Incentive (PLI) schemes, Make in India, and Aatmanirbhar Bharat, will buffer the economy from the negative effects of the U.S. tariffs.
Jain emphasised that while there would be a slight impact in the immediate term, the medium-term effects would likely be neutralized as the full impact of these policies is felt.

Strong domestic manufacturing to mitigate impact

Jain explained that India's domestic manufacturing base, bolstered by policies such as Make in India and Atmanirbhar Bharat, is a key factor in maintaining the country's economic resilience.

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These initiatives aim to make India more self-reliant and reduce dependence on imports, which in turn shields domestic industries from external shocks such as tariff hikes. The government’s continued support through strategic policy measures, including the PLI schemes, further strengthens the country’s industrial base and its competitiveness on the global stage.

«India’s robust industrial competitiveness will balance the impact of US tariff announcements and GDP will see only a 0.1% impact in the short term. However, in the medium term as the policy takes full effect this short fall will be negated» Jain said.

Jain further emphasised that India’s strong domestic demand will continue to mitigate any potential negative effects. The country’s transition