{"id":53897,"date":"2025-08-08T06:41:06","date_gmt":"2025-08-08T06:41:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/53897\/"},"modified":"2025-08-08T06:41:06","modified_gmt":"2025-08-08T06:41:06","slug":"moodys-warns-us-tariffs-may-hurt-indias-manufacturing-push-slow-growth-tradingview-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/53897\/","title":{"rendered":"Moody’s warns US tariffs may hurt India’s manufacturing push, slow growth \u2014 TradingView News"},"content":{"rendered":"

U.S. President Donald Trump’s steep 50% tariffs on Indian imports could severely undermine India’s manufacturing ambitions and slow economic growth, Moody’s Ratings said on Friday.<\/p>\n

Trump imposed an additional 25% tariff on Indian goods on Wednesday, citing New Delhi’s continued purchases of Russian oil, taking the total tariff to 50% \u2014 far higher than those levied on other Asia-Pacific countries.<\/p>\n

Moody’s said India’s real GDP growth may slow by around 0.3 percentage points from its current forecast of 6.3% for the fiscal year ending March 2026.<\/p>\n

“Beyond 2025, the much wider tariff gap compared with other Asia-Pacific countries would severely curtail India’s ambitions to develop its manufacturing sector, particularly in higher value-added sectors such as electronics, and may even reverse some of the gains made in recent years in attracting related investments,” the ratings agency said.<\/p>\n

Reducing Russian oil imports to avoid penalty tariffs could also make it harder for India to secure alternative crude supplies in sufficient quantities, Moody’s said. <\/p>\n

A larger import bill would widen the current account deficit, especially amid weaker tariff competitiveness that could deter investment inflows.<\/p>\n

“We expect there will likely be a negotiated solution that falls between the two scenarios described above,” Moody’s said.<\/p>\n

“The magnitude of the drag on growth from tariff obstacles will influence the government’s decision to pursue a fiscal policy response, although we anticipate the government will adhere to its focus on gradual fiscal and debt consolidation.”<\/p>\n

The Reserve Bank of India (RBI) kept its key rates unchanged as expected on Wednesday and retained its “neutral” policy stance following a surprise 50-basis-point rate cut in June.<\/p>\n

Global trade uncertainties, fueled by the U.S. tariffs, have also unsettled foreign investors. Foreign portfolio investors have sold $900 million worth of Indian equities so far in August, after $2 billion in outflows in July.<\/p>\n

India’s benchmark equity indices \u2014 the Nifty 50 \"\"\/NIFTY<\/a> and the Sensex \"\"\/SENSEX<\/a> \u2014 fell 2.9% in July and are down 0.7% so far in August, as investor anxiety rises amid escalating trade tensions.<\/p>\n","protected":false},"excerpt":{"rendered":"U.S. President Donald Trump’s steep 50% tariffs on Indian imports could severely undermine India’s manufacturing ambitions and slow…\n","protected":false},"author":2,"featured_media":2628,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-53897","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/53897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=53897"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/53897\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/2628"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=53897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=53897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=53897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}