US Tariffs Threaten India's Economic Growth Amid Ongoing Trade Negotiations

The announcement of a 25% tariff on US imports starting August 1 is expected to negatively impact India's GDP, according to experts. The tariff, coupled with a penalty, primarily affects key sectors such as marine products, pharmaceuticals, textiles, and automobiles, which are significant in the bilateral trade dynamic.

US President Donald Trump made the declaration following previous discussions about an impending US trade visit to India. The heightened tariff puts further strain on India's economic projections, with analysts predicting a sharper downturn if no swift trade agreement is reached. Key parties still hope for a mutually beneficial resolution.

Economic experts stress the importance of negotiations to finalize a trade deal to minimize the adverse effects. Various voices, including those from EY India and other economic advisories, emphasize the continued diplomatic engagement as critical. Investors remain cautiously optimistic about future trade direction and the eventual settlement of tariffs at a more favorable rate.

(With inputs from agencies.)