India's Economy Grows 7.8% Amid Tariff Cuts and Conflict Risks

India's economy grew by 7.8% year-on-year in Q1 2023, surpassing the forecast of 7.2% and the previous quarter’s growth. Key developments included the U.S. lowering tariffs from 50% to 10%, boosting trade prospects. However, growth expectations have since been tempered to 6.6% for the year due to rising inflation projections from the Reserve Bank of India, now at 5.1%. The ongoing Middle East conflict is anticipated to increase pressure on the economy and the rupee due to rising import costs and potential weather-related disruptions from El Nino.