Indian Economy in 2025: Navigating Tariffs, Policy Changes, and Consumption Challenges
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Indian Economy in 2025: Navigating Tariffs, Policy Changes, and Consumption Challenges

The Indian economy navigated 2025 with mixed results, facing external challenges like U.S. tariffs and H-1B visa restrictions, which impacted trade deals. Despite these headwinds, India's exports saw an uptick in November, supported by pharmaceuticals and electronics, and successful market diversification. Domestically, macroeconomic indicators remained strong with low inflation and interest rates. Policy changes, including income tax adjustments and GST slab rationalization, aimed to boost demand, while new labor codes enhanced worker social security. The primary challenge for 2026 is reviving consumption to stimulate private investment.

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