India, Sept. 9 -- Chief Economic Advisor (CEA) V Anantha Nageswaran has said that while the economic impact of the US tariffs will be significant, but manageable, in the immediate term, there is a high possibility of a "larger" effect, which may result in a major risk for the Indian economy. In a recent interview, he explained that the GDP growth will be trimmed by 0.5-0.6 per cent in this financial year. But if there is no deal between India and the US, and the 50 per cent tariff spills into the next financial year, the cost will be bigger. It is evident that despite the GST cuts, India cannot sleep peacefully.

For the moment, the CEA feels comfortable with the Government's growth forecast of 6.3-6.8 per cent in 2025-26. During the year...