Trump tariffs may trim 0.5% from India's FY26 GDP: CEA Nageswaran

V Anantha Nageswaran warns prolonged US tariffs pose a major risk to growth, but remains confident of meeting India's 6.3-6.8 per cent GDP target for FY26

Chief Economic Adviser V Anantha Nageswaran on Monday said the 50 per cent tariff imposed by the US could reduce India’s gross domestic product (GDP) by 0.5 per cent in FY26.

 

"Depending upon how long it lasts even in this financial year, it may translate into a GDP impact of somewhere between 0.5 per cent to 0.6 per cent," he told Bloomberg TV.

 

Nageswaran said he hopes the tariffs are a "short-lived phenomenon". If they extend into the next financial year, he cautioned, the drag would be greater and pose a “major risk” to India’s growth momentum.