Will have no impact on MPC policy: Experts

Slower global growth, weaker demand may dampen biz sentiments

- BENN KOCHUVEEDAN @ Mumbai

ECONOMISTS estimate that the proposed 27% additional tariffs on Indian exports to the US could shave 30-90 basis points (bps) off India's GDP growth this fiscal year.

Tanvee Gupta Jain, chief economist at UBS Securities, said, "Our base case GDP growth forecast for FY26 is 6.3%, which already incorporates a 25 bps drag from tariff hikes. However, the sheer magnitude of the newly proposed tariffs suggests further downside risks, potentially lowering growth by another 30-55 bps."

The US accounts for 18% of India's goods exports, which equates to about 2% of GDP. The economic impact will depend on whether these tariffs are implemented, how long they remain in place, and whether negotiations lead to reductions.