India's Chief Economic Advisor (CEA), V Anantha Nageswaran, on Friday, 29 August 2025, said that the country is retaining its GDP growth rate despite the heavy 50% tariffs imposed by US President Donald Trump, reported the news agency PTI.
In a press conference on Friday, CEA Nageswaran said that, looking at the ‘resilience’ in the April-June quarter growth rates, the Ministry of Finance retains its growth rate expectations in the range of 6.3% to 6.8% for the Indian economy's financial year 2025-26.
“Despite the reciprocal tariffs and penal tariff (imposed by the US), and after seeing the resilience of Q1 growth we are retaining the growth rate projections for current fiscal at 6.3-6.8 per cent,” Nageswaran told the media on Friday.
The annual economic survey, which was tabled in Parliament ahead of the Union Budget, also mentioned that economists are predicting a GDP growth of 6.3% to 6.8% for the 2025-26 fiscal year.
According to the agency report, Nageswaran hopes that the aggregate demand growth in the Indian economy should hold up in the upcoming quarters as the country will now focus on the GST rate cut and festive season demand to boost consumption.
Nageswaran on Trump Tariffs
The Chief Economic Advisor said the government is not expecting ‘significant’ downside risks to the GDP growth due to the high US tariffs.
“Not expecting significant downside risks to GDP growth due to high US tariffs,” CEA V Anantha Nageswaran told the media on Friday.
Nageswaran also called the impact of the high US tariffs on India's economy ‘short-lived’.
US President Donald Trump has imposed a total of 50% tariffs on all imports from India on top of the baseline 10% tariff rate for all goods imported into the United States.
Mint reported earlier that US President Donald Trump, ahead of his 1 August 2025 tariff deadline, imposed 25% initial tariffs on India. Later, he signed an executive order adding 25% additional tariffs on all imports from India, which became effective on 27 August 2025.
Trump cited India's oil trade with Russia and the nation's high tariffs on the US as the reason behind the heavy import duties.
India's GDP Snapshot
Mint reported on Friday that the Indian economy recorded a 7.8% gross domestic product (GDP) growth in the first quarter of the 2025-26 fiscal year due to continued lower inflation. This marks a 40 basis point increase from the 7.4% GDP growth rate in the previous quarter.
“India’s real GDP surged by a robust 7.8% in Q1 of FY 2025-26, well above the 6.5% recorded a year earlier, signalling strong momentum at the very start of the fiscal year. The services sector added further strength with 7.6% real GVA growth, reflecting deepening dynamism across key areas,” said Sanjay Nayar, the president of industry body — Associated Chambers of Commerce and Industry of India (ASSOCHAM), according to an ANI report.
“This encouraging performance underscores India’s resilience and adaptability, reaffirming its vibrant growth trajectory and ensuring the nation will confidently sail through prevailing global headwinds,” he said.
