The 25 per cent US tariffs, plus a penalty for Russian imports, could dent India’s GDP growth by 30 basis points in the current fiscal, but the higher duty is unlikely to significantly affect India’s domestic demand-driven economy, Barclays said in areport by PTI .
If the 25 per cent tariff, announced by US President Donald Trump , is implemented from August 1, the effective average US import tariff on Indian goods will rise to 20.6 per cent in trade-weighted terms, as per Barclays estimates.
This is sharply higher than both the pre ‘liberation day’ tariff rate of 2.7 per cent and the 90-day pause tariff rate of 11.6 per cent.
In contrast, India’s import tariff on US goods is lower, at 11.6 per cent in trade-weighted terms.
Barclays said that given the relatively closed nature of the Indian economy, wherein domestic demand is the mainstay of growth.
