The US has left room to impose punitive taxes on imports under its reciprocal tariff plan if levies do not yield desired results, a study says.

The Indian economy is mainly driven by domestic demand, and has substantial services exports, which is not going to be targeted by the Trump Administration, according to S&P Global Ratings.

U.S. President Donald Trump's threat to impose reciprocal tariffs from early April is feeding anxiety in India's export sectors from autos to agriculture, with Citi Research analysts estimating potential losses at about $7 billion a year.