GDP growth up to 100 bps may be lost

IMPACT ON CURRENT ACCOUNT DEFICIT IN FY26 SEEN AT 0.8% OF GDP ASSUMING THAT GLOBAL CRUDE OIL PRICES DO NOT SPIRAL UPWARDS

- PRASANTA SAHU

THE PROPOSED DOUBLING of extra tariff on Indian goods to 50% may shave off India's economic growth by anywhere between 40 to 100 basis points on an annualised basis, according to analysts. Goldman Sachs had previously estimated a potential direct impact of around 0.3pp annualised to India's real GDP growth, following Trump's late July announcement of 25% tariff on Indian imports.