Trump's Tariffs: India's Growth Forecast Takes a Hit

Trump’s Tariffs: India’s Growth Forecast Takes a Hit

India’s real GDP growth forecasts have been revised downwards, impacting the nation’s economic trajectory. The new projections stand at 6.5% year-on-year for calendar year (CY) 2025 and 6.4% for 2026.

This downward revision, announced Wednesday, August 6, 2025, attributes the slowdown to the impact of former US President Trump’s tariffs on trade. The figures reflect a reduction of 0.1 and 0.2 percentage points respectively, compared to previous estimates.

The revised forecasts highlight the vulnerability of the Indian economy to global trade uncertainties. Experts are now closely monitoring the evolving geopolitical landscape and its potential further impact on India’s growth prospects.

This development underscores the need for proactive measures to diversify export markets and strengthen domestic demand to mitigate the effects of future external shocks. The government’s response to this challenge will be crucial in maintaining economic stability and achieving its growth targets.

Karanveer Sharma

A dedicated journalist and legal expert with a passion for uncovering the truth and advocating for justice. With hands-on experience in investigative journalism, legal research, and case analysis, I possess a strong ability to break down complex legal and societal issues into clear, impactful narratives. My work is driven by a commitment to transparency, integrity, and empowering people with accurate, insightful information.