New Delhi
The US has imposed tariff 25 per cent on India and has announced to impose an extra 25 per cent tariff, which is effective since August 27. Now economists are expressing concern about this tariff. Experts say that this will have a profound impact on India’s economy. Market expert Ajay Bagga has warned of serious consequences on India’s economy regarding Trump Tariff.
He says that 50 percent of tariffs can affect India’s GDP about 23 billion dollars. Writing on the social media platform X, Bagga said that the tariff of America will increase the cost burden on the Indian exporter rapidly. Bagga said that exporters of most affected sectors such as auto equipment, textiles, jewelery, carpets, chemicals and metals would have to face losses in the busy season.
Economy growth can reduce so much with tariffs
He said that handmade technology products, which are 35 per cent of the US export, will increase the effective tariff from August 27 to 63.9 per cent. This tariff for carpets will increase 58.9 percent. Bagga said that this would affect India’s GDP from 0.3 per cent to 0.6 per cent, which will cause loss of $ 23 billion. It can also affect jobs.
Goldman Sax also expressed concern!
Goldman Sax said that US President Donald Trump imposed 25% additional duty on Indian imports may further increase India’s economy. This decision related to India buying raw oil from Russia may reduce the actual GDP growth by 0.3 percent. With the new tariff, the Indian Export Average Tariff Rate in the US is expected to be up to 32 percent.
India’s Export-Emport from US
India exported goods worth $ 86.5 billion values to the US in FY 2025, while importing $ 45.7 billion, with electronics, chemicals, medicines and clothes major exports. America was 4% in the import of crude oil in India, which increased to 8% in April and May 2025, yet it has been less than Russia’s contribution.
What does India have option?
Ajay Bagga has given some suggestions to the Government of India, which can protect India from America’s tariff war. He said that GST can reduce the impact of tariffs like heavy cuts in GST on conjuncts, subsidies for petrol-diesel and LPG, short-term and long-term capital gains (STCG and LTCG), to increase facilitation for trade, increase ease of trade and measures such as measures for infra.
Bagga also said that India’s 150 million consumer class is the highest tax -paying class globally and needs immediate tax relief to encourage expenses.
Which sector will have more effect on tariffs?
Sector Previous Tariff New Tariff Effects India
Woven cloth (texti) 13.9% 63.9% loss than Vietnam
Apparel 10.3% 60.3% fears to lose access to global market
Manufactured Clothing 9% 59% carpet, domestic textile industries will be affected
Carpet 2.9% 52.9% exports of $ 1.2 billion affected
Gems and jewelery 2.1% 52.1% sector of $ 10 billion, MSME most affected
Shrimp/seafood 33.26% average 58% export will be lower
Medications currently exempted up to 0% 50%, but unsafe
Textile: The tariff is decreasing according to the value competition by reaching close to 60%. The existence of MSME in knitting, woven costumes and domestic clothes is in danger.
James and Jewelery: With the increase in tariff from 2% to 52%, America does not see it possible to export financially.
Shrimp and sea food: Indian exporters already struggling with high tariffs have now to bear a burden of 58%.
Pharmaceuticals: Currently exemption is exempted, but being involved in future tariffs can cause India to obstruct India’s $ 8–11 billion dollars.
