Trump-era tariffs may dent India’s GDP by up to 0.2-0.5%, says finance secretary Ajay Seth
Washington, D.C.: India’s Finance Secretary Ajay Seth on Wednesday said that U.S. tariffs imposed under President Donald Trump’s administration could reduce India’s GDP growth by 0.2 to 0.5 percentage points, Reuters reported.
Speaking at a Hudson Institute event on the sidelines of the IMF and World Bank Spring Meetings, Seth noted, “Now there is a sign of that…we grow about 6.5% in the current year.”
According to the report, Seth warned that the broader impact of these tariffs could extend beyond direct effects, with “second order (effects)” potentially weighing on global economic momentum.
“That would be important,” he added, referring to the risks of wider trade disruptions slowing down international growth.
Despite the challenges, Seth expressed optimism about India’s economic trajectory, saying a 7% potential growth rate over the next decade was within reach.
However, he emphasised the need for India to grow even faster to meet its long-term developmental goals.
Seth also confirmed that Indian officials were in Washington for continued trade discussions with their U.S. counterparts, although he declined to share specifics about the schedule or agenda of the meetings, the report said.
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