Customs duties will especially hit the electronics sector.

According to Moody’s, the imposition of up to 50% import tariffs on Indian goods by the US could harm India’s Atmanirbhar Bharat ("Self-Reliant India") strategy.

The tariffs would particularly hit the electronics sector, reducing GDP growth from 6.3% to 6% in the 2025-2026 fiscal year.

The agency warns that prolonged customs tensions could weaken export competitiveness and slow down investments, but India has sufficient foreign exchange reserves and will maintain its status as the world's fastest-growing economy.