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US tariffs to hit India's GDP growth, spur more rate cuts
Bangkok Post
|April 08, 2025
India's economic growth could slow by 20-40 basis points in the ongoing financial year due to the latest US tariffs, which would prompt deeper interest rate cuts by the central bank, analysts said.
US President Donald Trump on Wednesday slapped a 26% reciprocal tariff on India, threatening the Reserve Bank of India's (RBI) estimate of 6.7% economic growth in 2025-26 and the government economic survey forecast of 6.3%-6.8%.
After the tariffs, Goldman Sachs lowered its growth estimate to 6.1% from 6.3%. Citi forecast a 40 bps drag on growth directly and indirectly, while Mumbai-based QuantEco Research estimated a 30 bps hit.
Dit verhaal komt uit de April 08, 2025-editie van Bangkok Post.
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