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Trade considerations, services strength

The decision by the US to scrap the preferential trade status granted to several Indian products has grabbed headlines this week. But the direct impact of the measures will be small. India’s exports to the US last year were worth just 2% of GDP. Nevertheless, the measures should give India’s policymakers some food for thought. Meanwhile, PMI data for February add to the evidence that the domestic service sector is currently in good health.

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