Moody's Sees Limited Tariff-Hit On Indian Economy, But Pegs FY26 GDP Growth At 6.5%

"The US' imposition of high tariffs will have limited negative effects on India's economic growth in the near term," Moody's said. (Representative image: Freepik) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Moody's Ratings on Monday said it expects India to remain the fastest growing G20 economy and has forecasted GDP growth at 6.5% in fiscal year 2026. In its report, the ratings agency also added that the 50% tariffs imposed by US President Donald Trump will have limited impact in the near-term period.

"The US' imposition of high tariffs will have limited negative effects on India's economic growth in the near term," Moody's said. However, it may constrain potential growth over the medium to long term by hindering India's ambitions to develop a higher value-added exp