English
New Delhi: In a significant development amid the ongoing trade related conflict between India and US led by US President Donald Trump, former RBI Governor Duvvari Subbarao has warned that Donald Trump’s proposed 50% tariff on Indian exports could reduce India’s GDP growth rate by up to 50 basis points and worsen unemployment. Here are all the details you need to know about what former RBI Governor Duvvari Subbarao has said about US’ tariffs on the Indian economy.
In a recently released report by Moody’s, India’s strong domestic demand and the robust performance of its services sector will help cushion the economic impact of steep new US tariffs imposed as a penalty for continued imports of Russian crude oil.
“We project that real GDP growth may slow by around 0.3 percentage points compared with our current forecast of 6.3 per cent growth for fiscal 2025-26 (ending March 2026). However, resilient domestic demand and the strength of services sector will mitigate the strain.” noted the report.
Last week, US President Donald Trump signed an executive order slapping an additional 25 per cent “penalty” tariff on Indian goods, citing India’s sustained purchases of Russian oil despite Western sanctions.
Notably, the rate is significantly higher than the 15-20 per cent levies faced by most Asia-Pacific nations, potentially denting India’s competitiveness in global trade.
(With inputs from agencies)
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