6 days ago
'GDP may fall by...': Former RBI governor issues big warning for Indian economy, says US tariffs and China can disturb...
US tariff- impact on India
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. What has former RBI Governor Duvvari Subbarao said on US tariff impact? How much GDP growth has Moody's Ratings predicted for India?
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. Why China is a major threat for India's GDP growth?
'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. How much traffic has Donald Trump imposed on India?
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)
