US EditionMoody's Warns U.S. Tariffs May Hurt India's Manufacturing Push, Slow Growth
INDIA, AUG 8 – Moody's projects a 0.3 percentage point GDP slowdown due to 50% US tariffs, warning of manufacturing setbacks and risks to India's self-reliance strategy amid ongoing trade tensions.
- On August 6, 2025, President Donald Trump announced a supplementary 25% tariff on imports from India, increasing the overall tariff rate to 50%.
- This tariff increase followed a prior 25% duty announced on July 31 as part of a broader US tariff rollout targeting over 60 countries including India.
- Moody's warned the tariff hike could severely limit India's manufacturing ambitions, especially in electronics, and slow GDP growth amid ongoing trade talks since March.
- Moody's forecasted India's fiscal 2025-26 GDP growth could slow by 0.3 percentage points from 6.3%, while Bloomberg projects exports to the US could drop by 60%.
- The 50% tariff will take effect on August 27, 2025, creating uncertainty for businesses and prompting India to delay US weapons purchases amid trade tensions.
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Total News Sources14
Leaning Left3Leaning Right4Center0Last UpdatedBias Distribution57% Right
Bias Distribution
- 57% of the sources lean Right
57% Right
L 43%
R 57%
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