The material impact of tariffs are apparent now with revenues flowing in and employment statistics souring in the US. At the same time, the legal validity of tariffs remains in question. Whether the tariffs stay or not, countries have decidedly altered their foreign policy to form alternate alliances, with the SCO being a highlight. The month also saw a steepening of yield curves and rise in longer-end yields, reflecting investor concern over rising debt. Back home, India remained surprisingly insulated in Q1, clocking a above par GDP growth. There is recognition that amidst global headwinds from high tariffs imposed on India, a domestic consumption stimulus is in order. The GST reform is a welcome step in this regard. In this uncertain environment with changing dynamics, foreign capital remains fickle, and currency is the first casualty. Managing these will be critical for ensuring stable growth in the future
