US President Donald Trump’s decision to impose an additional 25 % tariff on India has made a profound impact on the Indian economy.
Additional tariffs, which are in addition to the current 25 %, are considered a major setback for Indian exports.
Economists say that the decision will harm India against regional rivals like Vietnam and Bangladesh.
Indian economist one Prasan called this decision a “major negative” step for Indian exports, saying that “now with a total rate of 50 percent, many Indian exports will face serious difficulties compared to those countries with 15 to 30 percent tariffs.
However, he also stated that some important areas such as electronics and pharmaceuticals have been exempted from this additional tariff.
Banking economist, Sakshi Gupta has warned that if there is no trade agreement in the next 21 days, India’s GDP may decrease 40 to 50 basis points for 2026.
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“This will bring the overall growth rate below six percent.”
According to him, this deficiency has doubled from his earlier estimates.
Acutes expert Teresa John believes that the decision has increased India to reach a trade agreement.
He says that India may have to agree possible to reduce the purchase of Russian oil and turn to other sources.
Bank economist Gora Sen Gupta said that “If this tariff lasts till March 2026, the GDP estimate for the financial year 2025-26 can be reduced by 0.3 percent from 0.3 percent.”
The decision came after the statement of US President Donald Trump in which he accused India of directly or indirectly importing from Russia.
This step is likely to weaken India’s trade status in global markets.