'Too early to gauge US tariff impact on India's GDP growth': CEA V Anantha Nageswaran
Indian goods currently face a 25 per cent reciprocal tariff in the US, which will increase to 50 per cent starting August 27.
- Aug 13, 2025,
- Updated Aug 13, 2025 2:26 PM IST
Chief Economic Advisor (CEA) V. Anantha Nageswaran on Wednesday said that the Indian economy has not shown any signs of slowing down after the US' announcement of a 50 per tariff on Indian imports. He added that it is too early to assess the impact of the tariffs on India's GDP growth, Mint reported.
He further projected India's economic growth in the range of 6.3 per cent to 6.8 per cent in the current fiscal year.
Indian goods currently face a 25 per cent reciprocal tariff in the US, which will increase to 50 per cent starting August 27. In a bid to stop the Russia-Ukraine war, Trump levied 25 per cent additional tariffs on Indian imports due to New Delhi's Russian oil and energy imports.
In 2022, India decided to purchase Russian oil sold at a discounted rate after West imposed sanctions on Moscow and shunned its supplies over invasion of Ukraine.
This has pushed the US tariff rate for India up sharply to an average of at least 28 per cent, compared with a weighted average of just 2.8 per cent before Trump announced the hikes.
Trump’s announcement last week of an executive order imposing an additional 25 per cent tariff came just ahead of a scheduled visit by a US delegation to India on August 25 for the sixth round of talks on the proposed bilateral trade agreement.
In response, India’s Ministry of External Affairs stated that the move unfairly and unreasonably targets the country.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” it said.
The increase in duties by the US—India’s largest export market, accounting for nearly 20 per cent of its total outbound shipments—could dent export growth. In 2024-25 (Apr–Mar), India exported goods worth $86.51 billion to the US, resulting in a trade surplus of $40.82 billion.
Chief Economic Advisor (CEA) V. Anantha Nageswaran on Wednesday said that the Indian economy has not shown any signs of slowing down after the US' announcement of a 50 per tariff on Indian imports. He added that it is too early to assess the impact of the tariffs on India's GDP growth, Mint reported.
He further projected India's economic growth in the range of 6.3 per cent to 6.8 per cent in the current fiscal year.
Indian goods currently face a 25 per cent reciprocal tariff in the US, which will increase to 50 per cent starting August 27. In a bid to stop the Russia-Ukraine war, Trump levied 25 per cent additional tariffs on Indian imports due to New Delhi's Russian oil and energy imports.
In 2022, India decided to purchase Russian oil sold at a discounted rate after West imposed sanctions on Moscow and shunned its supplies over invasion of Ukraine.
This has pushed the US tariff rate for India up sharply to an average of at least 28 per cent, compared with a weighted average of just 2.8 per cent before Trump announced the hikes.
Trump’s announcement last week of an executive order imposing an additional 25 per cent tariff came just ahead of a scheduled visit by a US delegation to India on August 25 for the sixth round of talks on the proposed bilateral trade agreement.
In response, India’s Ministry of External Affairs stated that the move unfairly and unreasonably targets the country.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” it said.
The increase in duties by the US—India’s largest export market, accounting for nearly 20 per cent of its total outbound shipments—could dent export growth. In 2024-25 (Apr–Mar), India exported goods worth $86.51 billion to the US, resulting in a trade surplus of $40.82 billion.