What will be India’s economic growth rate after Trump Tarif, Moody’s expressed this estimate in the report
India’s Economic Growth Rate: The rating agency Moody’s said on Friday that if the US implements a total of 50 percent import duty on Indian exports from August 27, then India’s economic growth rate will be reduced to 6 percent in FY 2025-26. This estimate is 0.3 percent less than the current forecast of the 6.3 percent growth rate for the current financial year. In the long run, it can affect the development plans of the manufacturing sector of India, especially electronics, such as electronics. Moody’s said that the 50 percent duty imposed on Indian imports is much higher than the 15-20 percent duty applicable to other countries in the Asia-Pacific region.
However, the rating agency said that India’s strong domestic demand and strengthening the field of services would be successful in reducing the pressure of US fee to some extent. Along with this, Moody’s said that India’s response to the higher American fee will decide what will be its economic growth, inflation and external condition.
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On August 6, US President Donald Trump announced an additional 25 percent duty on Indian imports. With this, from August 27, the total fee on Indian products will increase to 50 percent. Moody’s said that the 50 percent duty imposed on Indian imports is much higher than the 15-20 percent duty applicable to other countries in the Asia-Pacific region. In the long run, it can affect the development plans of the manufacturing sector of India, especially electronics, such as electronics.
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The agency said that India has sufficient foreign exchange reserves to deal with external instability and the government will probably gradually focus on fiscal and debt control. Moody’s said that since 2022, India has imported cheap crude oil from Russia which has helped them to reduce inflation and pressure on the current account deficit. India’s oil imports from Russia rose to $ 56.8 billion in 2024 as against $ 2.8 billion in 2021. (Language)
Edited by: Chetan Gour
