India's economy unexpectedly gathered steam in the April-June quarter, defying expectations of slower growth even as a sharp rise in U.S. tariffs on Indian imports threatens to weigh on business activity in coming quarters.

The US has imposed 50% Trump tariffs on about $45 billion worth of Indian exports. Labour-intensive sectors including textiles and gems, and jewellery are expected to face moderate pressures due to the US tariffs.

President Donald Trump made good on his threat to double tariffs on imports from India to 50%, a move that could endanger relations with one of America’s most

The U.S. doesn’t import as much from India as it does from trade partners such as China, Canada, Mexico or the European Union, but the increased levies will still be felt in certain industries.