India's economy shows resilience with a projected low current account deficit despite US tariffs.

Despite high US tariffs, India's current account deficit is expected to stay below 1% of GDP in the fiscal year 2026, according to CareEdge Ratings. Exports to the US grew by 22% in the first quarter, helped by tariff exemptions on electronics and pharmaceuticals. However, the higher tariffs have increased pressure on India to negotiate a trade deal with the US, while also affecting sectors like gems and jewelry. India's Chief Economic Advisor reassured that the tariff impact will be temporary, with the economy expected to remain resilient.