07:27 AM EDT, 08/27/2025 (MT Newswires) -- The additional 25% United States tariff on Indian imports come into effect on Wednesday for the country's purchase of Russian oil, noted Societe Generale.

This comes on top of the 25% reciprocal tariffs and lifts the effective tariff to 50%, wrote the bank in a note to clients.

SocGen has already pointed out earlier that even a 25% tariff rate was a setback, given the relative disadvantage versus its competitors except for exempt categories including pharma and electronics.

The textile and footwear industries are likely to be hit hard, stated SocGen. The hit to the employment-generating manufacturing sector could dent real gross domestic product growth to below 6%, pointed out the bank.

The Indian government is banking on lower Goods and Services Tax (GST) to boost consumption.

The rupee (INR) remains under pressure and threatens to weaken to 88.00/USD, where the Reserve Bank of India has successfully intervened before, added SocGen.