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India can suffer a loss of up to ₹ 52 lakh crore due to 50 percent tariff imposed by the US. This claim is made by Brokerage firm Jeffer’s equity strategy Global Head Christopher Wood. Wood said in his weekend newsletter ‘Grid and Fear’ that the 50% tariff imposed by Donald Trump would get India’s economy a shock of up to $ 55-60 billion. Wood said that the sectors who will suffer the most, include Testyl, Footware, Jewelery and James and many industries.
Wood claimed that Tariff on India is the result of Donald Trump’s displeasure. Because in May, India flatly denied Trump’s role in the ceasefire with Pakistan. This credit could be a means of winning the Nobel Prize for Credit Peace for Trump. Trump’s displeasure is another reason for failure not to stop the Russia-Ukraine war. This is the reason that India came under target for buying oil from Russia.
Wood spoke in favor of India
This tariff was imposed at a time when India and America were close to finalizing a major trade agreement. There was a screw up on many issues between the two countries. Agriculture was an important issue. Wood took the favor of India and said that no government will open the agricultural sector for foreign imports, because it will be on poor farmers. Farming in India is a source of income of about 25 crore farmers and laborers. About 40 percent of India’s workforce gets employment from farming alone.
Government will deal with tariffs
Wood also emphasized the concern of economic recession due to tariff. He said that the growth rate of GDP in the current quarter is estimated to be only 8 percent, while in recent years it has been between 10-12%. Jefferies’ India office estimates that the growth of 10 per cent in FY25 may decrease to 8.59% in FY26, which will be the lowest in the last 20 years except Kovid’s years. However, the government is taking steps to deal with these situations. In the first budget, there has been an announcement of income tax cut and now a major change in GST. Now four tax slabs are being reduced to only two 5% and 18%.
Small producers will have more impact
50% of the US tariffs will not have a direct impact on most big listing companies, but they can be a big shock for small and medium industries. These are industries that provide more employment. Wood warned that this could harm microfinance and consumer finance companies and if these tariffs remain for a long time, GDP can decrease by 11.2 percent. The good thing is that due to the tariff, India is getting closer. In September, direct flights between the two countries begin after five years. Wood described Trump’s decision as contrary to America’s foreign policy, which is not in his national interest. Because pushing India towards China cannot be in the interest of America.