- Wed, 20 Aug 2025 6 Min Read
Latest Economy Observer report from Dun & Bradstreet highlights domestic resilience under threats of higher-than-expected US tariffs
MUMBAI, India, Aug. 20, 2025 -- Dun & Bradstreet, a global leader in business decisioning data and analytics, has released its Economy Observer report for August 2025. Economy Observer is a monthly report sharing in-depth analysis of key macroeconomic developments in India and provides forecasts for key economic indicators, and insight into the expected direction of the Indian economy.
Key economic forecast:
Real Economy: India's industrial activity continues to expand at a modest pace. Dun & Bradstreet expects the Index of Industrial Production (IIP) to have grown by 1.7% in July 2025, reflecting steady momentum in manufacturing, especially in basic metals, and construction-linked sectors, despite contractions in mining and electricity. However, the outlook will be clouded by the US announcement on 6th August of an additional 25% tariff on imports from India due to purchase of oil and derivatives from Russia, bringing the total rate to 50% effective August 27, 2025. A bilateral trade deal is still under negotiation, which could offer some relief if agreed upon in the coming months, but until then exports from sectors like gems and jewelry, and certain electronic items will be impacted. The Comprehensive Economic and Trade Agreement (CETA) signed by India and the UK in July, which eliminates tariffs on 99% of Indian exports, might offset the impact partially.
