By Admin 
Trump tarif on india: US President Donald Trump has imposed 50 percent tariff on import of Indian goods. Its effect will be seen on the country’s GDP (GDP). V. Anant Nageswaran, the Chief Economic Advisor of the country, says that the tariff imposed by Trump can reduce the country’s GDP this year. Nagswaran on Monday mentioned this in an interview to Haslinda Amin of Bloomberg TV. He said, I hope that the tariff imposed on India as a penalty will be for a short time.
Impact of so many percent on GDP
He said, depending on how long the tariff will remain applicable during this business year, it can affect GDP between 0.5 percent to 0.6 percent. However, if the uncertainty on tariffs continues till the next financial year, then it will have more effect, which is likely to create more risk for India.
Why Trump imposed penalty on India?
Trump had earlier imposed a baseline tariff of 25 percent on Indian goods, which was later increased by 25 percent as a penalty. This penalty was extended over the purchase of oil from Russia. The US President has accused India of providing help to Russian President Vladimir Putin’s war against Ukraine through oil purchases, which is affecting American efforts to enable a peace agreement between the two sides. America’s tariff imposed on India is the highest in Asia. Due to this, Indian goods will have to face more competition in American markets. America is the largest export market for India. Due to this, labor-dominated businesses like textile and jewelery are expected to cause the most damage.
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