United States’ Tariffs Impact: The main economic advisor to India (CEA) in Anantha Nageswarean believes that the United States’s tariffs in India will be “short -term” and will achieve a resolution “earlier than later”, PTI reported.
Nageswarean, who acknowledged that the continuation of American tariffs (with obligations was 50 percent from August 27), will have some impact on the Indian economy in the second quarter.
The US deposited combined 50 % of tariffs on imports from India, effective from August 27, which is compared to previous 25 % of duties, such as “punishment” for the purchase of Russian oil in its invasion of Ukraine.
CEA NAGESwaren on Trump Tariffs Impact on Economy
“There were two parts of American tariffs. They will both have an impact in the second quarter and perhaps a little at the beginning of the fourth quarter calendar or fiscal third quarter,” he told the press agency on August 30.
However, he was optimistic and added: “I think some of these customs measures will be short -term and many interviews are going on between India and the US government. And I believe the resolution will be found earlier than later.”
He also felt convinced that the impact of tariffs on the growth of the Indian economy in the 4th quarter would be “contained” and perhaps not more than part of the third quarter.
He said, “GST’s tax relief will also be compensated, and the impact of the very good monsoon we had, and agricultural production should start doing better than we saw in the fiscal first quarter.”
CEA Nageswarean in the Indian economy
The hope of the basic resistance of the Indian economy said that high growth momentum exposed to the first quarter of the current fiscal (Q1FY26) is expected to continue in the upcoming quarter, with decreasing distortion based on high American tariffs.
The Indian economy showed stronger than the expected growth of 7.8 %in April-June, which is the fastest pace in five quarters.
“I think the first quarter of the fiscal year was definitely better than expected. Many people attributed the fact that the GDP deflator was much weaker this year …
He added: “Yet GDP growth number in the first quarter in the current fiscal year was much better than expected … This indicates the basic resistance of the Indian economy in general and the delayed effects of various initiatives conducted by the government since its inception in 2014 and more in the last two budgets continued in the second fiscal quarter.”
(Tagstotranslate) Indian economy
