Latest news with #Phua
Time of India
an hour ago
- Business
- Time of India
US tariff impact: S&P says India's long-term growth story intact; cites reforms and robust domestic demand
S&P Global Ratings on Tuesday said that high US tariffs are unlikely to derail India's long-term growth prospects, citing the government's focus on reforms, infrastructure investment and improving living standards. The ratings agency, which recently upgraded India's sovereign credit rating to 'BBB' with a stable outlook after 18 years, pointed to strong economic fundamentals and fiscal discipline as key drivers, PTI reported. 'Going forward, we expect this growth dynamics will continue to play out over 3 years with growth averaging about 6.8 per cent. If infrastructure and connectivity improve in India, it will remove bottlenecks that are hindering long-term economic growth and bring India's potential growth path even higher,' S&P Global Ratings Director YeeFarn Phua said. India, Phua added, remains one of the strongest and best-performing economies globally. 'Over the past 3-4 years, India has been an outperformer in growth compared to regional peers,' he said at a webinar on India's rating upgrade. On the specific impact of higher tariffs, S&P Asia Pacific Economist Vishrut Rana said India's economy is largely sheltered due to its domestic orientation. 'India's economy is relatively less trade-oriented, with external demand contributing only 15 per cent of the overall economy and 85 per cent driven by domestic factors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo So it is a very heavily domestically oriented economy. That is one element of shelter,' Rana said. He noted that mitigating factors, such as exemptions for some sectors and limited exposure to the US, would cushion the blow. 'It is a complicated environment. There are several mitigating factors which are likely to cushion the overall impact on the economy. Still, we could see some short-term confidence effects on the economy. Medium term, the structural factors — favourable growth path, infrastructure and continued favourable business environment — will determine the growth path,' Rana said. The US has already imposed a 25 per cent tariff on Indian goods effective August 7, with an additional 25 per cent duty scheduled from August 27, taking the total to 50 per cent. Phua stressed that India is staying on course with reforms despite external disruptions. 'These external developments (like high tariffs) can sometimes create some noise but by and large, this government is staying on course and trying to improve the standard of living for its people,' he said. Asked about the tariff impact on growth, Phua underlined that S&P takes a long-term approach. 'Exposure of India to the US in terms of exports is just 1 pc of GDP. So, even though tariffs remain high, we don't think it will have an overall impact on India's long-term growth prospects. Short term, it might have some marginal hit to growth, over a longer term, we believe India's growth story remains sound,' he added. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Time of India
7 hours ago
- Business
- Time of India
Proposed 2-tier GST structure could lower effective tax rate, boost revenues in long term: S&P
S&P Global Ratings suggests that the proposed 2-tier GST structure in India could simplify implementation and potentially boost fiscal revenues in the long run. The Centre's proposal to reduce GST slabs to 5% and 18%, with a special 40% rate on select items, aims to streamline the taxation system. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: The proposed 2-tier GST structure could lower effective taxation rate and boost fiscal revenues over the longer term, S&P Global Ratings Director YeeFarn Phua said on comments come ahead of a crucial meeting of the Centre and states on Wednesday and Thursday to discuss GST reform proposal by the central government has proposed reforms in the Goods and Services Tax (GST) regime wherein slabs would be reduced to just two -- 5 and 18 per cent-- and a special tax rate of 40 per cent on select few there are 4 slabs under GST -- 5, 12, 18 and 28 per cent and the taxation system has been an important component of the government's to a question on the impact of GST rate rejig on revenues, Phua said the current GST regime is complex with four different rates which makes accounting, and implementation quite difficult sometimes."With the proposed 2-rate system being looked at, though the effective rate could be somewhat lower, because of easier implementation and accounting process, there could be a boost to fiscal revenues over longer term," Phua said at a that the proposal is being deliberated both at the Centre and state levels, Phua said the reforms in the GST system are unlikely to hit fiscal revenues."Overall, we don't think it would be a major drag on fiscal revenue . With lower rates and clearer implementation, it is possible to boost consumption spending in short-term as well. That is something we are watching out for," Phua per the Centre's proposal, 99 per cent of the items in current 12 per cent slab will be brought down to 5 per cent, while 90 per cent of the items in 28 per cent slab will be bracketed at 18 per changes will reduce classification disputes, scope for litigation and evasion as well as remove duty inversion.
Economic Times
7 hours ago
- Business
- Economic Times
US tariff unlikely to impact India's long-term prospects: S&P
S&P Global Ratings says high US tariffs will likely not affect India's long-term growth. The government focuses on economic reforms and improving living standards. India's economy is domestically oriented, providing shelter from external shocks. Structural factors like infrastructure and a favorable business environment will determine growth. Exposure to the US in terms of exports is limited. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: S&P Global Ratings on Tuesday said high US tariffs are unlikely to impact India's long-term growth prospects as the government is focused on economic reforms and trying to improve the standard of living of people.S&P, after a gap of 18 years, upgraded India's sovereign credit rating to 'BBB' with a stable outlook. It cited robust economic growth, political commitment for fiscal consolidation and 'conducive' monetary policy to check inflation as the reasons for the rating upgrade."Going forward, we expect this growth dynamics will continue to play out over 3 years with growth averaging about 6.8 per cent. If infrastructure and connectivity improve in India, it will remove bottlenecks that are hindering long-term economic growth and bring India's potential growth path even higher," S&P Global Ratings Director YeeFarn Phua remains among the strongest and best-performing economies in the world, and over the past 3-4 years, India has been an outperformer in growth compared to regional peers, Phua said at a webinar on India's rating the impact of high US tariffs, S&P Asia Pacific Economist Vishrut Rana said India's economy is relatively less trade-oriented, with external demand contributing only 15 per cent of the overall economy and 85 per cent driven by domestic factors."So it is a very heavily domestically oriented economy. That is one element of shelter," Rana said, adding, another mitigating factor of high tariffs is that the high 50 per cent tax is not applicable on all goods exported from India."It is a complicated environment. There are several mitigating factors which are likely to cushion the overall impact on the economy. Still, we could see some short-term confidence effects on the economy. Medium term, the structural factors -- favourable growth path, infrastructure and continued favourable business environment -- will determine the growth path," Rana US has imposed a 25 per cent tariff on Indian goods coming to the country, effective August 7. An additional 25 per cent duty is scheduled to be imposed from August 27, taking the total tariff to 50 per Phua said that India remains focused on economic reforms, fiscal consolidation and infrastructure investment."These external developments (like high tariffs) can sometimes create some noise but by and large, this government is staying on course and trying to improve the standard of living for its people," Phua about the impact of tariffs on growth, he said S&P takes a long-term view while deciding on ratings, and there are sectoral exemptions to pharma and consumer electronics."Exposure of India to the US in terms of exports is just 1 pc of GDP. So, even though tariffs remain high, we don't think it will have an overall impact on India's long-term growth prospects. Short term, it might have some marginal hit to growth, over a longer term, we believe India's growth story remains sound," Phua added.
Time of India
7 hours ago
- Business
- Time of India
US tariff unlikely to impact India's long-term prospects: S&P
S&P Global Ratings says high US tariffs will likely not affect India's long-term growth. The government focuses on economic reforms and improving living standards. India's economy is domestically oriented, providing shelter from external shocks. Structural factors like infrastructure and a favorable business environment will determine growth. Exposure to the US in terms of exports is limited. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: S&P Global Ratings on Tuesday said high US tariffs are unlikely to impact India's long-term growth prospects as the government is focused on economic reforms and trying to improve the standard of living of people.S&P, after a gap of 18 years, upgraded India's sovereign credit rating to 'BBB' with a stable outlook. It cited robust economic growth, political commitment for fiscal consolidation and 'conducive' monetary policy to check inflation as the reasons for the rating upgrade."Going forward, we expect this growth dynamics will continue to play out over 3 years with growth averaging about 6.8 per cent. If infrastructure and connectivity improve in India, it will remove bottlenecks that are hindering long-term economic growth and bring India's potential growth path even higher," S&P Global Ratings Director YeeFarn Phua remains among the strongest and best-performing economies in the world, and over the past 3-4 years, India has been an outperformer in growth compared to regional peers, Phua said at a webinar on India's rating the impact of high US tariffs, S&P Asia Pacific Economist Vishrut Rana said India's economy is relatively less trade-oriented, with external demand contributing only 15 per cent of the overall economy and 85 per cent driven by domestic factors."So it is a very heavily domestically oriented economy. That is one element of shelter," Rana said, adding, another mitigating factor of high tariffs is that the high 50 per cent tax is not applicable on all goods exported from India."It is a complicated environment. There are several mitigating factors which are likely to cushion the overall impact on the economy. Still, we could see some short-term confidence effects on the economy. Medium term, the structural factors -- favourable growth path, infrastructure and continued favourable business environment -- will determine the growth path," Rana US has imposed a 25 per cent tariff on Indian goods coming to the country, effective August 7. An additional 25 per cent duty is scheduled to be imposed from August 27, taking the total tariff to 50 per Phua said that India remains focused on economic reforms, fiscal consolidation and infrastructure investment."These external developments (like high tariffs) can sometimes create some noise but by and large, this government is staying on course and trying to improve the standard of living for its people," Phua about the impact of tariffs on growth, he said S&P takes a long-term view while deciding on ratings, and there are sectoral exemptions to pharma and consumer electronics."Exposure of India to the US in terms of exports is just 1 pc of GDP. So, even though tariffs remain high, we don't think it will have an overall impact on India's long-term growth prospects. Short term, it might have some marginal hit to growth, over a longer term, we believe India's growth story remains sound," Phua added.
News18
8 hours ago
- Business
- News18
US tariff unlikely to impact Indias long-term prospects: S&P
Agency: PTI Last Updated: New Delhi, Aug 19 (PTI) S&P Global Ratings on Tuesday said high US tariffs are unlikely to impact India's long-term growth prospects as the government is focused on economic reforms and trying to improve the standard of living of people. S&P, after a gap of 18 years, upgraded India's sovereign credit rating to 'BBB' with a stable outlook. It cited robust economic growth, political commitment for fiscal consolidation and 'conducive' monetary policy to check inflation as the reasons for the rating upgrade. 'Going forward, we expect this growth dynamics will continue to play out over 3 years with growth averaging about 6.8 per cent. If infrastructure and connectivity improve in India, it will remove bottlenecks that are hindering long-term economic growth and bring India's potential growth path even higher," S&P Global Ratings Director YeeFarn Phua said. India remains among the strongest and best-performing economies in the world, and over the past 3-4 years, India has been an outperformer in growth compared to regional peers, Phua said at a webinar on India's rating upgrade. On the impact of high US tariffs, S&P Asia Pacific Economist Vishrut Rana said India's economy is relatively less trade-oriented, with external demand contributing only 15 per cent of the overall economy and 85 per cent driven by domestic factors. 'So it is a very heavily domestically oriented economy. That is one element of shelter," Rana said, adding, another mitigating factor of high tariffs is that the high 50 per cent tax is not applicable on all goods exported from India. 'It is a complicated environment. There are several mitigating factors which are likely to cushion the overall impact on the economy. Still, we could see some short-term confidence effects on the economy. Medium term, the structural factors — favourable growth path, infrastructure and continued favourable business environment — will determine the growth path," Rana said. The US has imposed a 25 per cent tariff on Indian goods coming to the country, effective August 7. An additional 25 per cent duty is scheduled to be imposed from August 27, taking the total tariff to 50 per cent. Further, Phua said that India remains focused on economic reforms, fiscal consolidation and infrastructure investment. 'These external developments (like high tariffs) can sometimes create some noise but by and large, this government is staying on course and trying to improve the standard of living for its people," Phua said. Asked about the impact of tariffs on growth, he said S&P takes a long-term view while deciding on ratings, and there are sectoral exemptions to pharma and consumer electronics. 'Exposure of India to the US in terms of exports is just 1 pc of GDP. So, even though tariffs remain high, we don't think it will have an overall impact on India's long-term growth prospects. Short term, it might have some marginal hit to growth, over a longer term, we believe India's growth story remains sound," Phua added. PTI JD JD SHW view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy. Loading comments...
