U.S. tariffs may shave as much as half a share level off India GDP, says Finance Secretary

Ajay Seth, Finance Secretary.
| Photograph Credit score: ANI

The direct hit from tariffs launched by Donald Trump’s administration on India may shave off between 0.2-0.5 share factors from GDP development, the nation’s Finance Secretary Ajay Seth mentioned on Wednesday (April 23, 2025).

“Now there’s a signal of that…we develop about 6.5% within the present 12 months,” mentioned Mr. Seth, talking at a Hudson Institute occasion on the sidelines of the Spring Conferences of the Worldwide Financial Fund and World Financial institution in Washington.

“Second order (results) can be necessary,” mentioned Mr. Seth, referring to issues that commerce turmoil would sluggish international development.

He added that he anticipated potential development price of round 7% could possibly be achieved over the following decade, although India wanted to increase its financial system at a price quicker than that to realize its formidable longer-term targets.

Mr. Seth additionally mentioned that the delegation from India was on the town for additional negotiations on commerce with the U.S. administration, although he declined to giver additional element on what conferences have been deliberate.