India Booms Despite 50% US Tariffs

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Transcript

00:00You know, we're making a deal with India,

00:02a much different deal than we had in the past.

00:03So right now they don't love me, but they'll love us again.

00:06India might not be feeling the love just yet.

00:09But the economy is holding up.

00:12President Donald Trump's 50% tariffs have hit exports to the U.S.,

00:16which have now declined for two straight months.

00:19The rupee is at record lows,

00:20businesses are feeling the squeeze, and investors are on edge.

00:25Despite the headwinds, the economy is growing more than 8%.

00:28That's the fastest among major economies for now.

00:32Prime Minister Narendra Modi has rolled out measures

00:34to offset what are some of the highest tariffs in the world.

00:38He's used tax breaks to boost domestic spending

00:40and introduced new labor laws

00:42that give companies more flexibility in hiring and firing.

00:47Modi's promised more reforms to make it easier to do business

00:50and attract foreign investment.

00:53India is looking at opportunities across the globe,

00:55even easing tensions with its neighbor and rival China.

00:59It's also repaired its frayed relationship with Canada,

01:02with Prime Minister Modi signaling a willingness to do business

01:06with his Canadian counterpart, Mark Carney.

01:08But the road ahead isn't guaranteed.

01:11Much depends on how Modi's reform push plays out,

01:14with infrastructure gaps and workforce challenges still at play.

01:19A trade deal with the U.S., India's biggest partner,

01:22still hasn't come through,

01:23although there could be a resolution on that front soon.

01:26I think we're pretty close to doing a deal

01:29that's good for everybody, right?