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Fresh US Tariffs Could Further Slow Down India's Growth
August 08, 2025
|Mint Ahmedabad
India's economic growth in 2025-26 could be hit by another 20-30 basis points if US President Donald Trump's proposed additional 25% tariff hike on Indian goods takes effect later this month, economists cautioned.
The combined impact of Trump's total 50% tariff hike is conservatively projected to reduce India's FY26 GDP growth by 40-60 basis points, or 0.4-0.6 percentage points.
Indian exporters could be among the hardest hit when the additional duties kick in on 27 August, unless a breakthrough is reached during the 21-day negotiation window.
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