Archive Image: Ajay Seth, Secretary of the Department of Economic Affairs | Photo credit: ANI
American tariffs on India could shave to half a percentage point of the country’s economic growth, said a senior Indian government official, added that a more significant problem would be the fall of the global economy.
The “first order” beaten from the reciprocal tariffs of the United States in India, if it is imposed, could reduce the gross domestic product of nations between 0.2 and 0.5 percentage points, according to the economic Ajay Ajay Seth. He categorized that figure as “is not a great impact.”
“But the second order would be important,” Seth said in Washington on Wednesday. “The second order is whether the global economy grows less” than expected.
The International Monetary Fund cut its forecasts for world growth this year and next Tuesday, warning that the perspective could exceed even more while the tariffs of the president of the United States, Donald Trump, cause a global commercial war. It dropped its global projection by 2025 to 2.8 percent of 3.3 percent.
The Indian government maintains its growth perspective for fiscal year 2025-2026 from 6.3% to 6.8%, Seth said. The IMF lowered its prognosis of 2025 for the South Nation of Asia at 6.2%. Commercial uncertainty has cloudy the perspectives of the nation, with banks, including Morgan Stanley and Goldman Sachup Group Inc., pouring their own 6.1%forecasts, below last year’s growth or 6.5%.
Seth said it is too early to review the economy perspective of $ 4 billion because it is still negotiating to avoid 26% of exports to the US. UU., One of its largest commercial partners. He is optimistic about an agreement with Washington, he thought that specific details about conversations were not cooled.
They are “moving strongly,” he said.
The United States and India have progressed in a bilateral commercial agreement after the conversations between Modi and the American vice president JD Vance, who visited India this week.
The main negotiator of India, Rajesh Agrawal, will visit the United States this week. In recent months, Delhi has reduced import tariffs on American products, including Harley-Davidson Inc. motorcycles and Bourbon whiskey, and promised to tear down commercial barriers. It also plans to buy more US energy and defense goods.
India’s Minister of Finance, Nirmla Sitharaman, was destined to meet the United States Treasury Secretary, Scott Besent, at the IMF spring meetings in Washington this week. But he flew back to India after armed men killed at least 26 people in the region of Jammu and Kashmira, one of the worst attacks against civilians in India in years. Prime Minister Narendra Modi also shortened a visit to Saudi Arabia.
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Posted on April 24, 2025