Moody’s Analytics has revised India’s real GDP growth forecast for 2025 to 6.1% from 6.4% in its March projection. This adjustment reflects the growing external pressures stemming primarily from heightened US tariffs, rather than a domestic slowdown.A 26% tariff levied by the US on Indian goods presents a challenge for sectors such as gems and jewellery, textiles, and medical devices, which depend significantly on export demand. While the US has temporarily paused some tariff actions, the threat of further trade restrictions lingers. These policy shifts increase the cost and complexity of trade and have contributed to a deterioration in regional economic outlooks.
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