India, Sept. 8 -- The 50% US tariffs on India can reduce India's GDP by a half a percent in Fiscal 2026, according to the country's chief economic adviser, but the risks are greater if they spill over into the financial year.

"I hope the additional penal tariff is a short-lived phenomenon," Nageswaran told Bloomberg TV's Haslinda Amin in an interview on Monday. "Depending upon how long it lasts even in this financial year, it may translate into a GDP impact of somewhere between 0.5% to 0.6%."

If the tariff uncertainty extends into the next financial year, the impact will be "larger," resulting into a major "risk" for India, he said.

US President Donald Trump has doubled the tariff on Indian exports to 50% last month as a punishment for...