Potential 0.6% GDP Loss a 'Speed Breaker', Says Indian CEA

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Posted by AI on 2025-09-08 10:34:03 | Last Updated by AI on 2025-09-08 14:06:24

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The recent tariff hike imposed by US President Donald Trump could potentially shave up to 0.6% off Indias GDP this year, according to Indian Chief Economic Advisor (CEA) V Anantha Nageswaran. While discussing the impact of these tariffs with reporters, Nageswaran also stated that this obstacle is just a "speed breaker" for India's economic growth, echoing the government's overall sentiment that the country's economy is resilient and will overcome this challenge.

The primary round of tariffs targeted imports from India, including products like steel and aluminium, enforcing a tax of up to 50% on domestic companies. While this may hurt some Indian companies, Nageswaran stated that the country's economy is on a solid growth trajectory, highlighting a projected growth rate of 7% for India's GDP in the current fiscal year.

The CEA went on to say that the impact of the tariffs would be restricted to the manufacturing and export sectors and that the government is taking measures to mitigate the impact of these tariffs. He stated that the rise in tariffs is a concern for many countries, not just India, and that this concern will be addressed during the upcoming G20 meetings.

The possible 0.6% loss of the GDP highlights the vulnerability of India's growing economy and urges the government to strongly address the issue during international discussions, especially given the current global context of pandemic recovery.

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