India Poised to Weather Tariffs: Moody's

For India, the challenge lies in managing near-term disruptions while positioning for long-term gains

- Rhik Kundu

India's large domestic economy, low dependence on exports and government initiatives to boost private consumption, expand manufacturing capacity and increase infrastructure spending will help offset global trade risks, supported by easing inflation and strong banking liquidity, said Moody's Ratings on Wednesday.

In a report on emerging markets—in which Moody's concluded India's internal growth drivers anchor the economy amid US policy shifts and global uncertainty—it noted that recent tensions between Pakistan and India, including the May flare-up, are likely to have a greater negative impact on Pakistan's growth than on India's.