US tariffs’ impact may be a bit negative for FY26 India growth: Ind-Ra
If the US imposes reciprocal tariffs, India’s exports to there may fall by $2-7 billion in FY26, Ind-Ra estimates. Apparel and accessories are highly vulnerable. Such exports may fall by $1.78 billion in FY26, while GDP growth may fall by 5-20 bps from its earlier estimate of 6.6 per cent. Under a more plausible scenario, an export fall of $2-3.5 billion may lead to a 5-10-bps drop in GDP growth.
If the US imposes reciprocal tariffs, India’s exports to there may fall by $2-7 billion in FY26, Ind-Ra estimates.
Apparel and accessories are highly vulnerable.
Such exports may fall by $1.78 billion in FY26, while GDP growth may fall by 5-20 bps from its earlier estimate of 6.6 per cent.
Under a more plausible scenario, an export fall of $2-3.5 billion may lead to a 5-10-bps drop in GDP growth.
