Pakistan, April 4 -- India's economic growth is likely to slow down due to new tariffs imposed by the United States. Analysts estimate a decline of 20 to 40 basis points in the ongoing financial year. President Donald Trump recently announced a 26% reciprocal tariff on Indian goods. This could affect the Reserve Bank of India's (RBI) projected growth of 6.7% for 2025-26 and the government's forecast of 6.3% to 6.8%.

In response to the tariffs, Goldman Sachs has revised its growth estimate down to 6.1% from 6.3%. Citi forecasts a 40 basis points drag on growth, while QuantEco Research predicts a 30 basis points decline. With inflation expected to stabilize around 4.2%, close to the RBI's target, the central bank has already cut interest r...