India’s economic activity showed signs of slowdown in December, according to a preliminary survey conducted by HSBC Holdings. The survey indicated that growth in the country’s economic sectors modestly decelerated during the last month of the year.
The report suggests that this slowdown may be linked to ongoing trade tensions, particularly the 50% tariffs imposed by former U.S. President Donald Trump. These tariffs have been reported to have a notable impact on labor-intensive industries, which are a significant component of India’s economic structure.
Industry analysts note that the tariffs could be disrupting supply chains and reducing export competitiveness, thereby contributing to the recent slowdown. However, official economic data for December has yet to be released, and experts caution that a comprehensive assessment of India’s economic trajectory will require further analysis.
As India continues to navigate global trade challenges, policymakers may need to consider strategies to bolster growth amid external pressures. The coming months are expected to provide more clarity on whether this slowdown is transient or indicative of a longer-term trend.