India’s industrial production growth saw a slight increase to 3% in March, up from 2.7% in February, according to data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Monday. However, this marks a decline from 5.5% in March of the previous fiscal year, primarily due to the underperformance in the manufacturing, mining, and power sectors.

In March 2025, the growth rates for the sectors of Mining, Manufacturing, and Electricity were recorded at 0.4%, 3%, and 6.3%, respectively.

Mining production growth fell to 0.4%, down from 1.3% a year earlier, while power output decreased to 6.3% in March compared to 8.6% in the same month last year. For the fiscal year 2024-25, the Index of Industrial Production (IIP) grew by 4%, a decrease from the 5.9% growth recorded the previous year.

A recent report from the Union Bank of India noted that rising global economic uncertainty is likely to exert pressure on IIP growth in the near future. The report highlighted that April saw increased uncertainty in international trade due to reciprocal tariff hikes by the United States.

“We estimate that approximately 30 to 35 percent of the IIP’s weight is linked to exports, which may face challenges until trade conditions stabilize. Our analysis suggests that negative sentiment will likely lead to postponed investment decisions, while global economic uncertainty may dampen consumption, particularly for discretionary items,” the report stated.

Shares of Reliance Industries Ltd (RIL) surged over 5% on Monday after the company exceeded earnings expectations for the fiscal quarter ending in March. This performance positioned it as the top gainer on the Nifty 50 index.

RIL reported a net profit attributable to shareholders of Rs 19,407 crore for Q4 FY25, reflecting a year-on-year increase of 2.4%, surpassing market predictions due to reductions in depreciation, interest, and tax rates.

For the three months ending March 31, revenue rose 8.8% year-on-year to Rs 2.88 lakh crore, supported by robust growth in the company’s digital services, retail, and oil-to-chemicals segments.

The consolidated net profit for Q4 FY25 was Rs 19,407 crore, up from Rs 18,951 crore in the previous year. Additionally, RIL declared a dividend of Rs 5.5 per equity share for FY25. Sequentially, profits also increased from Rs 18,540 crore in the October–December quarter, while revenue from operations climbed to Rs 2.6 trillion, up from Rs 2.4 trillion recorded in January–March 2024.

Motilal Oswal has projected that Jio will lead growth with an anticipated annual EBITDA increase of 21% from FY25 to FY27. Meanwhile, Nomura Holdings identified several growth drivers, including the expansion of the new energy sector, expected tariff increases for Jio, and the potential IPO of Jio, which could unlock significant value for RIL. JP Morgan highlighted a notable 16% year-on-year growth acceleration in Reliance Retail for Q4.

In his first 100 days in office, U.S. President Donald Trump has enacted a series of executive orders and tariffs designed to shrink the country’s trade deficit and enhance domestic manufacturing. However, the swift and unpredictable nature of these policy shifts has left South Korean companies wary about making essential decisions regarding overseas projects and investments.

Trump’s varying policies, which include country-specific reciprocal tariffs of up to 50% with a 90-day implementation delay, have introduced considerable uncertainty into global markets, according to Yonhap News Agency.

Many South Korean firms, which depend heavily on exports to the U.S., are now facing challenges in adapting to this increasingly volatile trading landscape.

Initially, upon taking office on January 20, Trump threatened to impose 25% tariffs on all imports from Mexico and Canada—countries that enjoy tariff-free access to the U.S. under the U.S.-Mexico-Canada Agreement (USMCA)—but later retracted these tariffs.

In April, Trump unveiled his long-anticipated reciprocal tariffs on goods from nations with trade surpluses with the U.S., alongside a 10% baseline duty on imports from all countries, impacting South Korean products with a 25% reciprocal tariff.

While specific sectors like cars, semiconductors, and pharmaceuticals are exempt from these tariffs, they still face existing or forthcoming sectoral duties. The inconsistency in trade policy from the U.S.—the world’s largest economy—has posed significant strategic challenges for many South Korean exporters.

To address potential repercussions, several companies are considering relocating production or scaling back production. However, experts caution that these responses are limited. The unpredictable nature of U.S. trade policy complicates long-term planning and increases costs.

“Firms will look for ways to lower costs by moving production facilities or adjusting shipments to the U.S.,” explained Cho Seong-dae, head of the trade policy research office at the Korea International Trade Association (KITA). “Yet, predicting U.S. trade policy is nearly impossible, leaving many decisions in limbo as everyone awaits Trump’s next move.”

Following threats of tariffs on Mexican imports, South Korean companies like Kia Corp., Samsung Electronics Co., and LG Electronics Inc., had plans to relocate their Mexican operations to the U.S. or boost production elsewhere. However, these plans were put on hold once the tariffs were waived, and Mexico was excluded from reciprocal tariffs.

Recently, Hyundai Motor Group, South Korea’s largest automaker, announced a $21 billion investment in the U.S. over the next three years to increase American production. Nonetheless, the company remains subject to sectoral tariffs on imported vehicles, with Hyundai and Kia having sold 1.7 million vehicles in the U.S. last year, including a million cars made in Korea.

Meanwhile, trade negotiations between Seoul and Washington commenced last week, with South Korea seeking exemptions from both reciprocal and sector-specific tariffs. They have proposed a comprehensive “package deal” covering multiple sectors to achieve more favorable terms.

Amid these ongoing discussions, many South Korean companies are taking a cautious, wait-and-see approach while also formulating contingency plans. Samsung Electronics, which operates across semiconductors, home appliances, and smartphones, expressed optimism about navigating the shifting trade landscape due to its extensive global production network.

“The impact of the new reciprocal tariffs is minimal, but we are closely monitoring the evolving U.S. trade policies,” stated Yong Seok-woo, president and head of Samsung’s visual display business. “With ten global production bases, we intend to tackle these challenges through strategic allocation.”

In the semiconductor industry, where Trump has hinted at potential new tariffs, South Korean chipmakers remain cautious. “There’s not much we can do at this stage,” said an official from a major Korean chipmaker. “We must wait for Trump’s next announcement before defining our strategy.” Growing concerns also hover over investments already committed under the U.S. CHIPS Act.