Asia's economic divide forecast to widen in 2026

Amitendu Palit, a senior research fellow at the Institute of South Asian Studies in Singapore, said the high US tariffs have a limited impact on India. "The Indian economy draws a lot from its domestic economy," he said.

With India negotiating a bilateral deal on tariffs, Palit said its government also needs to consider whether the industries affected by the US tariffs can be supported through easier access to export finance.