New Delhi, March 31 -- India and Japan are the least exposed economies to US trade tariffs due to their strong domestic demand, according to a Morgan Stanley report released on Friday.

The report emphasizes that the ratio of goods exports to GDP is a crucial metric in assessing an economy's trade dependence and potential exposure to global trade policies.

"The ratio of goods exports to GDP is the most important metric as it determines the extent of trade orientation of an economy. This allows global research firms to assess which economies will face greater downward pressure on growth," the report stated.

"India and Japan have robust tailwinds from strong domestic demand, which helps offset external trade risks. Additionally, both econ...