New Delhi, Oct. 29 -- India's domestic demand environment remains favourable, supported by GST rationalisation and strong infrastructure spending, even as global trade uncertainties pose challenges, according to a report by ICICI Securities.

The report also noted that a potential trade deal with the United States could improve the export environment and help offset some of the external headwinds.

It stated, "Domestic demand environment is favourable but external demand could be a headwind given higher tariffs on India. A trade deal with US should improve the export environment."

The report highlighted that India's Index of Industrial Production (IIP) grew by 4 per cent year-on-year in September, maintaining the same growth rate as Augu...