India's economy is confronting substantial risks due to higher tariffs imposed by the United States, alongside challenges from increasing Chinese exports and domestic fiscal constraints, according to former Chief Economic Adviser (CEA) Arvind Subramanian. In a recent interview with Bloomberg Television, Subramanian cautioned against overly optimistic interpretations of India's latest GDP growth figures, citing potential inaccuracies in measurement. He specifically highlighted that US President Donald Trump's 50% tariffs on Indian goods, largely a response to India's continued procurement of Russian crude oil, continue to cast a shadow over the economic outlook, warning that these tariff rates could potentially increase further. This sentiment is corroborated by the current Chief Economic Adviser, V. Anantha Nageswaran, who, in an earlier Bloomberg TV interview, estimated that Trump's 50% tariffs could shave off between 0.5% to 0.6% from India's Gross Domestic Product (GDP) this fiscal year. Reports indicate that the cumulative US tariffs on most Indian goods reached 50% by October 2025, significantly impacting sectors such as textiles, gems, jewellery, and leather, with over half of India's approximately $87 billion merchandise exports to the US at risk. Industry analyses suggest a potential decline of $4-5 billion in engineering exports alone. Subramanian further pointed out issues of 'Chinese mercantilism,' where rapid Chinese exports pressure the Indian domestic economy, and raised concerns about India's fiscal situation, advocating for greater flexibility in currency policy to support exporters. The news emphasizes the intricate link between geopolitical alignments and India's economic vulnerabilities.