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2025-12-18 14:25:43
[US Tariffs Remain the Biggest Risk to India's Economic Growth in 2026] 1. According to a recent report by ANZ Research, US tariffs remain the biggest risk to India's economic growth in 2026. Economist Dhiraj Nim points out that this external challenge will continue to exert pressure until a favorable trade agreement is finalized. 2. The report analyzes that although domestic demand in India remains strong, weak merchandise trade has begun to reflect the impact of tariffs, requiring a stable central bank policy environment for support. Currently, India faces an effective tariff rate of up to 33% on exports to the US, the second highest globally, which could lead to lost export revenue and indirect unemployment, thereby dragging down medium-term economic growth. 3. ANZ predicts that if US tariffs remain unchanged and India fails to reach a new trade agreement, real GDP growth for the fiscal year ending March 2027 will slow slightly to 6.5% from the 7.3% projected for fiscal year 2026.
