Trump’s Tariff Shock: 0.4% GDP Hit Predicted for India in FY26
US President Donald Trump’s decision to impose a further 25 per cent tariff on Indian imports has sent ripples through the Indian economy. Economists and experts are warning of a significant impact.
The additional levy, announced on August 7, 2025, is expected to negatively affect India’s economic growth. Preliminary assessments suggest a potential 0.4 per cent reduction in GDP growth during the fiscal year 2026.
This development comes at a time when India is already navigating global economic uncertainties. The impact on key export sectors, such as textiles and pharmaceuticals, is likely to be substantial.
The government is yet to officially respond, but the situation demands immediate attention and strategic planning. Failure to mitigate the impact could lead to job losses and further strain on the economy. The coming months will be crucial in determining the government’s response and the overall economic fallout.
