India’s economic growth is projected to decelerate by 20 to 40 basis points in the current fiscal year due to new U.S. tariffs, prompting expectations of additional interest rate cuts by the Reserve Bank of India (RBI). President Donald Trump has imposed a 26% reciprocal tariff on Indian imports, challenging the RBI’s growth forecast of 6.7% for 2025-26 and the government’s estimate of 6.3% to 6.8%. In response, financial institutions like Goldman Sachs and Citi have revised their growth projections downward, anticipating further rate cuts to mitigate the tariffs’ impact.