Growth spurt before US tariff squeeze: July orders jump 29%

The value of aggregate new orders rose ahead of escalating geopolitical tensions and fresh tariffs on India.

- SACHIN P MAMPATTA

Orders worth ₹59,755 crore came in across 158 companies in July, according to data from the Centre for Monitoring Indian Economy (CMIE). This is 29.1 per cent higher than the ₹46,297 crore worth of orders recorded in July 2024. The rise came just before the US imposed an additional 25 per cent tariff — on top of the earlier 25 per cent levy — taking the aggregate tariff on Indian exports to as high as 50 per cent. The new tariff became effective on August 27.

Higher order flow is often seen as a sign of improving economic activity. But the tariff shock could dampen this buoyancy and slow private capital expenditure.