‘Strict rules of origin must accompany tariff cuts’

In addition to being the fastest growing major economy, India is pushing all the right levers of growth, including entering into free trade agreements (FTAs) with complementary economies, focusing on strengthening competitiveness and manufacturing, embracing AI and sustainability, and building trust globally ina disrupted world, Confederation of Indian Industry (CII) president Rajiv Memani says in an interview. Edited excerpts:

- Rajeev Jayaswal

Some high-frequency indicators such as the Goods and Services Tax collections in June reported moderate growth. Do you think India is losing growth momentum?

On a more immediate term basis, gross domestic product (GDP) growth in Q4 FY25 stood at a robust 7.4%, underscoring strong macroeconomic fundamentals. While GST collections in June 2025 showed moderate growth, rising by 6.2% year-on-year to ₹1.8 lakh crore, this does not indicate a loss of growth momentum for the Indian economy. Rather, it reflects a temporary moderation amid a challenging global environment. High-frequency indicators like manufacturing and services PMIs remain in expansionary territory, rural demand is showing signs of recovery, and inflation is under control. Looking ahead, factors such as a healthy monsoon, lower borrowing costs, strong services exports, and continued government capex are expected to sustain growth. CII’s GDP Growth Model forecasts real GDP growth in the range of 6.4-6.7% in FY26.

Will the US’s punitive tariffs impact India’s growth story? What could be the prudent solution?