New Delhi, Oct. 7 -- The Indian economy stumbled in August, hit by the US's additional 25% tariffs on top of the 25% reciprocal levy, as external risks weighed on domestic momentum through a weakening rupee, sliding stock market, and slowing exports.

The uncertainty and risks associated with shifting global trends continued to have an impact in September and so far in October, but the magnitude of the jitters was significantly less. However, the worst may not be over yet, even as the Indian economy is expected to hold well, benefiting from the goods and services tax (GST) revamp.

The Reserve Bank of India (RBI) and the government have taken a series of steps to offer a domestic buffer to the economy against external shocks. While these ...