US tariffs hit India growth

TRADE TROUBLE

- REUTERS

India's rupee plunged toward a record low and equity indexes declined Thursday after US President Donald Trump slapped steeper-than-expected tariffs on Indian goods, with analysts warning of sustained pressure on country's growth.

The 25 per cent tariffs announced could shave off the South Asian nation's growth in 2025-26 by up to 40 basis points, with the threat of additional penalties further clouding the outlook, economists said.

India’s benchmark equity indices, the Nifty 50 and BSE Sensex, fell about 0.6 per cent each, while the rupee declined to an over five-month low of 87.74 before paring losses amid likely dollar-selling intervention by the central bank.

The rupee is within touching distance of the record low of 87.95 it hit in February.