New York: International rating agency, Moody’s Analytics has revised India’s Gross Domestic Product (GDP) growth rate. Indian economy is expected to slow down further in 2025.
Moody’s said that India’s GDP growth rate will slow down to 6.4 per cent in 2025, from 6.6 per cent that was recorded in 2024. Growth in India will creep into the low-6 per cent range in the coming years from 6.6 per cent in 2024. This will be a result of new US tariffs and softening global demand weighing down on exports from the country.
In its report titled ‘Asia-Pacific Outlook: Chaos Ahead’, the credit rating house noted that the growth will slow down across the Asia-Pacific economy. Tensions in terms of trades, policy shifts, as well as uneven recoveries are set to knock the fortunes of the region, Moody’s Analytics warned.
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As per its APAC forecast, India’s GDP is expected to grow 6.4 per cent both in 2025 and 2026 fiscal years. In another report on January 29, Moody’s Analytics had highlighted the need to change its fiscal and monetary policy to achieve a 6.4 per cent GDP growth amid a weak rupee, declining foreign investment and volatile inflation.
The Reserve Bank of India stepped in a week later, cutting its repo rates to 6.25% from an earlier 6.5% during its Monetary Policy Committee meet.
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