India, Aug. 7 -- US President Donald Trump's decision to double tariffs on Indian goods to 50% could deliver a blow to India's economy, with analysts warning of a potential 1% hit to the country's gross domestic product.

The move, announced Thursday, is aimed at penalizing India for continuing to purchase oil from Russia. According to Bloomberg Economics, the new tariffs, which take effect in 21 days, are higher than those imposed on India's export competitors like Vietnam and even China, and could slash outbound shipments to the US by as much as 60%.

"The overall hit to GDP could be even higher at 1.1% over the medium term," Bloomberg analysts Chetna Kumar and Adam Farrar wrote, adding that further levies on sectors such as pharmaceuti...