New Delhi, Aug. 27 -- India can cushion the impact of the 50 percent additional tariffs imposed by the United States, which came into effect on Tuesday, by leveraging its growing domestic market and diversifying export destinations, according to the Global Trade Research Initiative (GTRI).

Ajay Srivastava, Founder, GTRI, said the Indian economy's strong internal demand provides a significant buffer.

"Our exports account for just 20 percent of the economy, while 80 percent is absorbed by the domestic market, which continues to grow at 6-7 percent annually. Domestic consumption can happily absorb some of the shocks," he told ANI.

The second avenue, he said, is to divert exports to alternative markets. India is accelerating negotiations o...