India's economy remained stable in July 2025, amid global trade uncertainty. The Finance Ministry's Monthly Economic Review indicated that strong domestic demand and sound macroeconomic fundamentals continued to support growth, while warning that rising protectionist trends abroad were beginning to weigh on India’s trade outlook. The report noted that global trade had already started to feel the effects of higher tariffs and policy uncertainty, which were dampening business sentiment. The Trade Policy Uncertainty Index rose 17% in July, reflecting growing concern among firms and investors. India’s exports of goods and services rose 4.5% yoy in July, while imports climbed 6.1%, widening the trade deficit to USD 11.7 billion - up from USD 10.1 billion a year earlier. The Finance Ministry cautioned that while the immediate impact of US tariffs on Indian exports appears limited, the delayed effects need to be addressed, as they could weigh on both trade and overall economic growth.