India's GDP at risk from tariffs: CEA

'GROWTH COULD DROP 60 BPS'

- FE BUREAU

THE DOUBLING OF the tariff on Indian goods to 50% by the US could shave up to 60 basis points (bps) off India's economic growth in the current financial year, chief economic adviser V. Anantha Nageswaran said on Monday.

"I hope the additional penal tariff is a short-lived phenomenon," Nageswaran told Bloomberg TV. "Depending upon how long it lasts even in this financial year, it may translate into a GDP impact of somewhere between 0.5% to 0.6%," he said.

However, if the tariff uncertainty extends into the next fiscal year, the impact will be "larger," resulting in a major "risk" for India, Nageswaran said.