New Delhi, Oct. 24 -- Domestic consumption is emerging as India's strongest buffer against global headwinds in the second half of FY26, even as a steep 50% tariff imposed by the US weighs on external demand, SBI Capital Markets (SBI Caps) said in a report on Friday.

India is pivoting to domestic growth levers as the Centre and states ramp up capex and goods and services tax (GST) rate cuts fuel record festive consumption, the investment banking and project advisory arm of State Bank of India (SBI) said in its latest October edition of Ecocapsule, a monthly report on the economy.

"After months of uncertainty, US tariffs now appear set to stay - with evolving country and product coverage - though their full economic impact is still unfold...