India's GDP Could Slow Down to 6% in FY26 if US Levies 50% Tariff

Moody's said India retains sufficient foreign-reserve currency buffers to weather external volatility

- OUR CORRESPONDENT

NEW DELHI: Moody's Ratings on Friday said India's GDP growth is likely to slow down by about 30 basis points to 6 per cent in the current fiscal if the US implements 50 per cent tariffs from August 27.

However, resilient domestic demand and the strength of the services sector will mitigate the strain on India, Moody's said, adding that India's response to high US tariffs will ultimately determine the effect on its growth, inflation and external position.

On August 6, the US announced an additional 25 per cent tariff on all Indian imports, in addition to an existing 25 per cent duty, taking the total duty to 50 per cent effective August 27.

The White House said the measure responds to India's continued purchase of Russian oil.