India, Sept. 2 -- The gross domestic product (GDP) growth for the June quarter of the current fiscal year paints a rosy picture at first glance - coming in at an impressive 7.8%, it comfortably beats expectations. But beneath the headline number lies a sobering reality: This is largely a statistical illusion, flattered by an unusually low deflator rather than a surge in the nominal output. Nominal GDP grew only 8.8%, well below trend, which will make meeting tax collection targets harder and strain debt sustainability dynamics.. The real test of India's economic resilience will come later in the year as punitive US tariffs on exports take hold.

US President Donald Trump's 50% tariff on exports from India to the US - the steepest against ...