India’s economy showed signs of cooling in September 2025 after US President Donald Trump’s 50% tariffs took effect. PMI surveys reported weaker manufacturing and services growth, though domestic demand offered some support.

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• US tariffs on India doubled to 50% on 27 Aug 2025
• Manufacturing PMI dropped to 58.5 from 59.3 in August
• Services PMI slipped to 61.6 from 62.9 last month
• Composite index fell to 61.9 vs 63.2 in August
• Early sign of growth slowing in Asia’s 3rd largest economy
• Exporters advanced shipments before tariff hike to cushion impact
• US tariffs slowed rise in new export orders Aug–Sept
• Domestic orders rose for second straight month, aided by GST cuts
• Govt expects GDP growth 6.3%–6.8% in FY 2025-26
• Modi govt working on exporter support, GST cuts to spur demand