Moody's Cuts '25 Growth Forecast to 6.1%

GDP growth in the December quarter stood at 6.2%, rebounding from a near two-year low in the previous quarter

- Rhik Kundu

Moody's Analytics on Thursday trimmed its calendar year (CY) 2025 growth forecast for India to 6.1%, lowering it by 30 basis points from its March projection, in response to US tariffs.

"Although US President Donald Trump has just declared a 90-day freeze on most of the harsh tariffs announced a week ago and applied a 10% blanket tariff in their place, the April baseline represents the economic toll they will have should they eventually go ahead in full," Moody's Analytics said in a note.

"Cambodia, Laos, Vietnam, Thailand, Taiwan, India, South Korea, Japan, Indonesia and Malaysia were to be subject to new tariffs ranging from 24% to 46% from 9 April. With the exception of China, the latest policy pivot means that all are now looking at a 10% tariff for 90 days," it added.