Us tarifs impact on gdpl: The American tariff has become the biggest obstacle in front of India’s economy. Because of this, not only the manufacturing will be affected, but it has started hearing the effect of feeling its effect on every sector from exports. Rating agency Moody’s warned 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.
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 American fee to some extent. Along with this, Moody’s said that it will be decided by India’s response to the high American fee that it will have to affect India’s economic growth, inflation and external position.
Growth shocks with double tariff
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 far more 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.
Help in currency control with cheap oil
The agency also said that India has enough foreign exchange reserves to deal with external instability and the government will probably gradually keep its attention 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, compared to only $ 2.8 billion in 2021.
Also read: Trump’s 50% tariff hit ‘Make in India’ plan, this big agency forecast
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