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India Ratings and Research said on Friday that while the 26% reciprocal tariff imposed by the US on Indian goods may not have a direct material impact on trade, a secondary ripple from global supply chain imbalances and investment caution could hit realisations across sectors such as chemicals, textiles, steel, and industrial machinery.
“Reciprocal tariffs, while having limited direct impact for India, create uncertainty and the risk of volatility in global markets,” said Rakesh Valecha, senior director, core analytical group, India Ratings.
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