Business
Barclays Raise Concern, Says Higher US Tariffs Could Go On To Dent India’s Growth GDP By 30 Basis Points
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.
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.