Moody’s Sees Less Impact Of US Tariffs On India

New Delhi: India will remain the fastest growing economy among the advanced and emerging G-20 countries and the large size of its domestic market makes the country less vulnerable to potential shocks from US tariff policy. The report highlights that India has a low external vulnerability indicator due to its relatively modest external debt to GDP ratio of 19 per cent and low export dependence on the US market at two per cent of GDP.

In its report on emerging markets, Moody’s stated that India’s GDP growth, projected at 6.5 per cent for 2025-26, will remain the highest of the advanced and emerging G-20 countries on the back of tax cuts and continued monetary policy easing by the Reserve Bank as inflation has come down. The report projects India’s inflation to average 4.5 per cent in the current financial year, down from 4.9 per cent in the previous fiscal year.