REUTERS

US President Donald Trump’s 50 percent tariffs on India could reduce the country’s gross domestic product by half a percent this year, the nation’s Chief Economic Adviser V. Anantha Nageswaran said in a Bloomberg TV interview on Monday.

“Depending upon how long it lasts even in this financial year, it may translate into a GDP impact of somewhere between 0.5 percent to 0.6 percent,” he told Bloomberg TV.

US President Donald Trump, who is seeking to broker an end to the Ukraine conflict, has said India’s oil imports are helping fund Moscow’s war effort and last month doubled tariffs on imports from India to 50 percent.

Finance Minister Nirmala Sitharaman said last week the world’s third-biggest oil importer and consumer will continue to buy Russian oil as it proves economical.

US-India two-way goods trade totaled $129 billion in 2024, with a $45.8 billion US trade deficit, according to US Census Bureau data.

Exporter groups estimate the tariffs could affect nearly 55 percent of India’s $87 billion in merchandise exports to the US, while benefiting competitors such as Vietnam, Bangladesh and China.