New Delhi, March 21 -- India's economy may be shielded from the full effects of US trade tensions due to its trade balance with the US, but the final impact will depend on the contours of a trade deal between the two nations says a research report by Union Bank of India.

As global markets react to uncertainty surrounding tariffs and economic policies under the Trump administration, India's financial system is feeling indirect effects, particularly through currency fluctuations and liquidity conditions.

With the global economy facing rising trade protectionism and recession fears, India's policymakers have focused on maintaining stability and growth.

The RBI and government have taken proactive steps to navigate these uncertainties, ensu...