India’s Chief Economic Adviser, V. Anantha Nageswaran, has warned that newly imposed 50% U.S. tariffs on Indian exports might shave 0.5–0.6% off India’s GDP in the current financial year. He emphasized that the risk could deepen if the tariffs remain longer. Despite this headwind, robust growth in Q1 and supportive domestic policies help retain the FY26 GDP forecast at 6.3–6.8%.
He highlighted that effective tax cuts, a historically low inflation rate, and strong consumption are major tailwinds. While the tariffs intensify pressure on export-heavy sectors like textiles and jewelry, the forecast remains optimistic thanks to resilient macroeconomic fundamentals.
