Sign In

Delhi News Daily

  • Home
  • Fashion
  • Business
  • World News
  • Technology
  • Sports
  • Politics
  • Lifestyle
  • Entertainment
Reading: India needs fiscal push to revive domestic growth: Arvind Sanger – Delhi News Daily
Share

Delhi News Daily

Font ResizerAa
Search
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Delhi News Daily > Blog > Business > India needs fiscal push to revive domestic growth: Arvind Sanger – Delhi News Daily
Business

India needs fiscal push to revive domestic growth: Arvind Sanger – Delhi News Daily

delhinewsdaily
Last updated: August 6, 2025 6:27 am
delhinewsdaily
Share
SHARE


“China imports as much oil from Russia as India does, but India doesn’t have a similar trump card—no pun intended—that it can use against Trump. Right now, it’s about Witkoff heading to Moscow tomorrow, and Putin offering some kind of olive branch by saying he won’t launch air attacks in exchange for avoiding tariffs. How all of this plays out remains to be seen,” says Arvind Sanger, Geosphere Capital Management.

Like I mentioned, there’s a lot to talk about when it comes to Trump—his commentary on the EU, China, India, and pharma. Let’s begin with what he said about the pharmaceutical sector. He’s announced a sharp hike in tariffs—eventually going up to 250% over the next 12 months. How do you see this playing out for pharma exporters to the US, especially companies operating within the US?
Arvind Sanger: Well, remember, he had already mentioned a 200% tariff a couple of weeks ago. Now he’s saying 150%, eventually going to 250%. So, to be honest, 200 or 250—who cares? The bottom line is, he’s trying to phase this in over time to encourage more pharmaceutical manufacturing within the US. Clearly, that’s a disadvantage for Indian pharmaceutical companies that rely heavily on exports to the US. It’s a headwind, and the market has been aware of it for a few weeks now. So, I don’t think it’s significantly new information. That headwind is already factored in and is likely to have an impact. Whether it starts at 150% or eventually reaches 250%, it will negatively affect the pharmaceutical industry.

Trump’s tone has also been quite harsh on the Indian market. He’s said he’s planning a substantial tariff hike in the next 24 hours. Meanwhile, his commentary on China seems more conciliatory—he’s even planning a meeting with Xi Jinping. On the flip side, he’s again threatening the EU with a possible 35% tariff if certain conditions aren’t met. How do you see Trump’s tariff strategy playing out, especially for India and China? And how do you think the markets will react?
Arvind Sanger: It sounds like China has something Trump wants. Two key things, in fact—first, the US needs rare earths in the short term, and second, Trump seems quite eager to visit China, meet Xi Jinping, and get a big photo op. Those are the cards China is playing to its advantage.

China imports as much oil from Russia as India does, but India doesn’t have a similar trump card—no pun intended—that it can use against Trump. Right now, it’s about Witkoff heading to Moscow tomorrow, and Putin offering some kind of olive branch by saying he won’t launch air attacks in exchange for avoiding tariffs. How all of this plays out remains to be seen.

ET logo

Live Events

My sense is that Trump is unlikely to take any dramatically escalatory steps against India—especially on the Russian oil front. If India were to stop buying Russian oil altogether, Russia would struggle to find replacement buyers, meaning some of that oil would be off the global market. That would definitely spike oil prices.

We must keep in mind that when it comes to Iran, Venezuela, or even Russia, Trump’s bark has so far been worse than his bite. In the case of Iran, for instance, he made strong statements, but Iranian oil flows remained largely unaffected. So personally, I’m not overly worried about Trump being truly serious about halting Russian oil flows. He’s been a toothless tiger so far when it comes to stopping oil from major producers.
Domestically, what’s the bigger concern for India? Forget tariffs for a moment—why is there consistent FII selling? What should domestic investors be doing right now?
Arvind Sanger: If you look at the earnings numbers, auto sales, two-wheeler sales—basically any India-specific economic statistic—it doesn’t quite support the kind of multiples that the Indian market is currently trading at. So, while India has been positioned as a growth story, that growth isn’t showing up in earnings in a big enough way to get people like me excited.

Yes, India might still be the fastest-growing major economy, but it’s not translating meaningfully into numbers that make it a “must buy.” The weakening rupee is also reducing India’s attractiveness for dollar-based investors. And if exports take a hit, we’ll need to find domestic opportunities where growth is visible.

The Indian government may need to step up—not just the RBI, but also on the fiscal front. They may need to be more aggressive, even run a slightly higher deficit, to kickstart growth. If that happens, then domestic themes like consumption, infrastructure, leisure, and travel could benefit. But for now, growth doesn’t look terrible, it just doesn’t look very robust either.



Source link

Share This Article
Twitter Email Copy Link Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article ‘We’re going to see what happens’: US envoy Steve Witkoff heads to Moscow ahead of sanction deadline due Friday; tariff and ceasefire talks on agenda | World News – Times of India – Delhi News Daily
Next Article ‘My beloved leaders…’: American Singer Mary Millben’s appeal amid tariff row; urges US and India to ‘negotiate as real friends’ | World News – Times of India – Delhi News Daily
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • When Mahesh Babu said “Bollywood can’t afford me”: A throwback to the ‘SSMB29’ actor’s controversial remark | Telugu Movie News – The Times of India – Delhi News Daily
  • Princess Diana’s time capsule opened: What was found and revealed | World News – The Times of India – Delhi News Daily
  • UAE: Dubai tenants now must share details of who they live with on Ejari platform, how to fill in co-living details | World News – The Times of India – Delhi News Daily
  • ‘Trump is Dead’ trends on X: J D Vance’s remark over US president sparks frenzy; Simpsons prediction adds fuel – The Times of India – Delhi News Daily
  • Ssense seeks bankruptcy protection as luxury e-commerce falters – Delhi News Daily

Recent Comments

No comments to show.

You Might Also Like

Business

Patel Chem Specialities IPO to open on July 25, price band set at Rs 82 to Rs 84 per equity share – Delhi News Daily

Patel Chem Specialities will open its Initial Public Offering (IPO) on Friday, July 25. The issue comprises a fresh offer…

4 Min Read
Business

India’s NSE enters global top 10 exchanges ranking for the first time – Delhi News Daily

The National Stock Exchange of India (NSE) has entered the global top 10 list of exchanges for the first time,…

3 Min Read
Business

​Vanguard’s India portfolio shines: 10 stocks rally up to 80% in FY26. Do you own any? – Delhi News Daily

Top FII investorVanguard Fund's portfolio is making a powerful statement in the Indian equity market, numbers speak for themselves. The…

1 Min Read
Business

Markets bracing for tariff-driven price surge: Santosh Rao – Delhi News Daily

"Many companies front-loaded their purchases to beat the tariff deadlines. They stocked up on inventory in advance. But now, that…

4 Min Read

Delhi News Daily

© Delhi News Daily Network.

Incognito Web Technologies

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?