US Tariff May Not Impact India Much: Morgan Stanley

New Delhi: When it comes to the ratio of goods exports to GDP in the wake of US trade tariffs, India and Japan are the least exposed economies owing to domestic demand strength, a Morgan Stanley report said on Friday.

The ratio of goods exports to GDP is the most important metric; it determines the extent of trade orientation of the economies. This allows global research firms to assess which economy will face more downward pressures on growth.

“India and Japan — these economies have robust tailwinds from domestic demand strength as an offset and relatively lower ratios of goods exports to GDP,” the report mentioned.

The US has also implemented 25 per cent tariffs on auto imports.