Tariff math explained: How Indian exports face effective duty of 33.6% and not 50%

The US 50% tariff on Indian exports effectively comes down to 33.6% after exemptions, easing the headline shock but still posing challenges.

Key sectors like textiles, gems & jewellery, and labour-intensive industries face the greatest impact, with risk of reduced competitiveness and substitution.

Economists see potential silver linings: government reforms, GST signals, targeted fiscal and credit support, and RBI rate cuts could mitigate the impact.

Nomura and HSBC project FY26 GDP growth at 6.0–6.5%, with tariffs partially offset by countermeasures, but competitiveness against Asian peers remains a concern.