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According to a recent report by SBI, the US GDP growth may fall to 40–50 basis points (0.40%-0.50%) in the current financial year due to 50 per cent tariff imposed on India.
According to the SBI report, due to these tariffs, US GDP growth may fall to 40–50 basis points (0.40%-0.50%) in the current financial year. At the same time, the pressure of inflation will also increase further.
The report said that inflation in America is increasing due to tariffs and weak dollars. Sectors such as electronics, automobiles and consumer durables will be the most affected. It is feared that inflation will remain above the target of 2 percent of the Federal Reserve and this pressure may remain till 2026.
Impact on Indian exports
America’s tariff will directly affect Indian exports of about $ 45 billion. Especially labor intensive industry like textile, james and jewelery may get a big shock. However, sectors like pharma, smartphones and steel are currently safe as there is a discount and demand on them.
India’s current trade surplus is also in danger with America. The SBI report says that if there is no agreement soon, then this surplus can end and turn into a trade deficit.
Trump’s difficulties will increase
This is an economic shock for India, while in America too, its impact can be seen politically. Decreasing GDP and rising inflation will bring American consumers under pressure, which can raise questions on Trump’s policies.
After starting a career with print media, he has been working as a senior copy editor in News18Hindi for the last 8 years. Business news team is part of the team for almost 4 years. He has experience of about one and a half decades in the media. Business … Read more
