Moody's Cuts 2025 GDP Growth Forecast to 6.1%

Gems and jewellery, medical devices, and textile industries may be among worst hit

- Press Trust of India

NEW DELHI: Moody's Analytics on Thursday cut India's GDP growth forecast to 6.1% for 2025 on looming higher US reciprocal tariff threats.

It said the US is one of India's largest trading partners, so a 26% tariff hovering over imports of Indian goods will heavily impede the trade balance.

"We revised India's GDP growth forecast to 6.1% in 2025 from 6.4% in our March baseline," said the Moody's Analytics report titled 'APAC Outlook: U.S. Versus Them'.

It said gems and jewellery, medical devices, and textile industries will be among the worst hit.

Regardless, we expect overall growth to be relatively insulated from the shock since external demand makes up a relatively small portion of GDP, Moody's Analytics said.