Moody’s trims India’s 2025 GDP growth forecast to 6.3%
Why in the news
Moody’s Ratings lowered India’s 2025 growth outlook, citing policy uncertainty, trade tensions and geopolitical risks.
Key facts
- 2025 forecast: 6.3% (earlier 6.6%); 2026: 6.5%.
- Risks: US-China trade tensions, India-Pakistan tensions.
- IMF: FY26 at 6.2% (earlier 6.5%). World Bank: 6.3% (earlier 6.7%).
| Country | Earlier | Moody’s 2025 |
|---|---|---|
| India | 6.6% | 6.3% |
| China | 4.5% | 3.8% |
| US | 2.0% | 1.0% |
Tariff backdrop
- On April 2 the US announced 26% duty on Indian goods; a 10% baseline tariff is already active.
- US Treasury Secretary Scott Bessent said talks were “very close” to a deal.
Exam angle
- A trade deal could ease risks and aid exports.
- Slowdown expected across G-20 trade and investment.