Trump’s 50% Tariffs Could Trim India’s GDP by 0.6%, Says CEA
India’s Chief Economic Adviser V. Anantha Nageswaran has warned that U.S. President Donald Trump’s decision to impose 50% tariffs on Indian goods could shave off as much as 0.5% to 0.6% from the nation’s GDP this year. In an interview with Bloomberg TV on Monday, he noted that the impact would depend on how long the tariffs remain in place, but emphasized that growth momentum is expected to continue with the government’s forecast of 6.3–6.8% expansion for the fiscal year ending March 2026.
The tariffs, announced last month, came as Trump accused India of indirectly funding Russia’s war in Ukraine through oil imports. Despite U.S. concerns, Finance Minister Nirmala Sitharaman reiterated that India, the world’s third-largest oil importer, will continue purchasing Russian oil as it remains economical. Washington’s move doubled duties on imports from India to 50%, potentially reshaping trade flows in Asia.
Exporter groups warn the tariffs could hit nearly 55% of India’s $87 billion in annual merchandise exports to the U.S., which already accounts for the country’s largest trading partner. With U.S.-India goods trade totaling $129 billion in 2024 and a $45.8 billion American deficit, analysts say competitors like Vietnam, Bangladesh, and China stand to gain from the disruption.
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