Economists Downplay US-India Trade Talk Impact, Highlight India's Strong Fundamentals

Axis Bank's Chief Economist Neelkanth Mishra expressed surprise at market reactions to US-India trade talks, suggesting the focus should be on India's strong fundamentals like credit growth and domestic demand. He argued that potential flat tariffs from the US would negate India's need to negotiate specific trade terms. Both Mishra and UBS's Gautam Chhaochharia emphasized that foreign direct investment (FDI) is driven by earnings growth and broader emerging market trends, not short-term trade news, with India remaining an attractive long-term prospect.