US Tariffs on Indian Goods: Minimal Impact on Economy, Says Study

The 25 percent tariffs on Indian goods announced by US President Donald Trump are predicted to have a negligible impact on the Indian economy, as a recent study by the PHD Chamber of Commerce and Industry (PHDCCI) suggests. According to the study, only $8.1 billion worth of Indian exports to the United States could be affected.

The study indicates that the tariffs, set to take effect on August 7, 2025, will only marginally impact India's GDP by 0.19 percent. The analysis further estimates a mere 1.87 percent dent in India's total global merchandise exports.

To counteract the effects of these tariffs, the PHDCCI recommends measures such as market diversification, product development, and bundling-pricing deals. Additionally, leveraging Indian diaspora networks and forming joint ventures with US firms are advised to navigate the tariff landscape effectively.

(With inputs from agencies.)