Domestic demand underpins India growth: Moody's

Country better positioned to deal with extra US levies

- FE BUREAU

INDIA IS BETTER positioned than many other emerging markets to deal with US tariffs and global trade disruptions, helped by robust internal growth drivers, a sizeable domestic economy and a low dependence on goods trade, Moody's Ratings said on Wednesday.

Under the so-called reciprocal tariff scheme, India faced an additional tariff of 26% for goods exports to the US. On April 9, the US administration authorized a 90-day pause on the implementation of most tariffs, reverting to a universal rate of 10% on almost all targeted countries.

The direct trade impact on India is limited. Even though the US is the single largest export destination for Indian goods, the temporary relief provided by the pause and the smaller portion of goods exports in GDP compared to other emerging markets in Asia-Pacific limit the effects of tariffs on India's growth, Moody's said.