Business EconomyPosted at: Aug 7 2025 11:28AM


US tariff impact on Indian GDP is negligible, says report

New Delhi, Aug 7 (UNI) India’s export sector showed resilience against the backdrop of steep US tariffs as per the whitepaper released by PHD Chamber of Commerce and Industry (PHDCCI).
It is themed as ‘Impact of Trump Tariffs on India’ and notes only a marginal impact on the Indian economy due to its sectoral robustness.
The whitepaper noted: “Electronics exports surged from USD 1.8 billion in FY 2020 to USD 14.64 billion in FY 2025, driven by smartphone assembly and exports. Agri-food segments (tobacco, coffee, meat & dairy, cereals, rice, fruits & vegetables) show double-digit CAGRs, showing rising US consumption demand.”
“Petroleum products rebounded strongly after the FY 2021 slump, driven by the refinery exports reflecting an increase in value-added export to the US,” the whitepaper added.
Moreover, India continues to be at a tariff disadvantage compared to its export rivals, including Vietnam, Mexico, Ireland, and Germany. However, India’s shift from commodity-based exports to value-added, technology-driven segments is adjusting the impact.
The whitepaper highlighted some high-performing sectors, including pharmaceuticals and engineering goods. In contrast to these sectors, traditional exports like textiles, gems & jewelry, and leather remain volatile.
“With an elasticity of -0.5 per cent, an estimated loss of export trade value of USD 8.11 billion based on 2024-25 India-US trade figures, which is only 1.87 per cent of India’s total global export. On a GDP basis, the impact would be negligible, 0.19 per cent,” the whitepaper added.
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