Moody's Ratings on Friday said India's GDP growth is likely to slow down by about 30 basis points to 6 per cent in the current fiscal if the US implements 50 per cent tariffs from August 27.
However, resilient domestic demand and the strength of the services sector will mitigate the strain on India, Moody's said, adding that India's response to high US tariffs will ultimately determine the effect on its growth, inflation and external position.
On August 6, the US announced an additional 25 per cent tariff on all Indian imports, in addition to an existing 25 per cent duty, taking the total duty to 50 per cent effective August 27.
The White House said the measure responds to India's continued purchase of Russian oil.
"Should India continue to procure Russian oil at the expense of the headline 50 per cent tariff rate on goods it ships to the US, which is currently its largest export destination, we project that real GDP growth may slow by around 0.3 percentage points compared with our current forecast of 6.3 per cent growth for fiscal 2025-26 (ending March 2026)," Moody's said.
The 50 per cent tariff on India compares with the 15-20 per cent duty for other Asia-Pacific countries.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances
