Trump tariffs may shave 40 bps off India’s GDP in FY26, but 3 factors could cushion the impact, says HDFC Bank economist

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India’s FY26 GDP growth may dip by up to 40 bps as steep US tariffs hit exports, especially in jewellery, leather, autos, and electrical machinery. HDFC Bank’s Sakshi Gupta warns of ripple effects on jobs, investments, and sentiment, though pharma, electronics, semiconductors, and petroleum remain unaffected.