US Tariffs Threaten India's Growth: A Closer Look
Morgan Stanley reports that prolonged US tariffs on Indian goods could decrease India's economic growth by 0.4 to 0.8 per cent. The hefty 50% tariff is projected to have significant direct and indirect impacts, potentially necessitating domestic policy interventions. A sixth round of negotiations is anticipated.
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In a recent report, Morgan Stanley disclosed that ongoing US tariffs on Indian goods could potentially reduce India's economic growth by 0.4 to 0.8 per cent. The analysis follows a substantial increase in tariffs on Indian exports to 50 per cent, posing significant risks if sustained over a 12-month period.
The report highlighted that comprehensive evaluations, derived from input-output modeling, suggest the direct impact could amount to 60 basis points in growth reduction. A similar indirect impact is anticipated, doubling the potential economic hit. These predictions are made assuming no mitigating strategies are employed.
Importantly, Morgan Stanley noted that the sixth round of trade negotiations, scheduled for August 25, will be crucial in determining future relations. As geopolitical developments unfold, monitoring will continue, especially if current tariff conditions persist without official intervention. (ANI)
(With inputs from agencies.)
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