WASHINGTON – The direct loss of tariffs introduced by Donald Trump in the Indian government could drop by 0.2-0.5 percentage points from GDP growth, the country’s finance minister Ajay Seth said on Wednesday.
“There’s a sign now…we’re growing about 6.5% this year,” Seth said at an event at the Hudson Institute.
“The second order (impact) is important,” Seth said, referring to concerns that trade turmoil will slow global growth.
He added that he expects a potential growth rate of about 7% over the next decade, although India needs to expand its economy faster than it can achieve its ambitious long-term goals.
Seth also said the delegation from India had further trade negotiations with the U.S. government in the town, although he refused to give further details on the planned meeting.
