India’s Economy Shows Resilience Against US Tariffs
According to Moody’s Ratings, the economic rubber of India does not leave it with bare hands to the effects of US tariffs and the disturbances in global trade. The organization stressed the fact that India's internal growth is its main strength and its low dependence on exports.
Government Policies Support Domestic Growth
The Indian government is taking steps to grow its economy. These include increasing manufacturing capacity, boosting private consumption, and spending more on infrastructure. Moody’s added that reducing inflation and lowering interest rates are also helping the economy.
India Less Exposed Compared to Other Countries
According to Moody’s, India is better placed than many other developing countries to manage US trade restrictions. The large domestic market and strong economic activity within the country help reduce its reliance on global trade.
Infrastructure and Tax Cuts Fuel Economic Activity
Government spending on infrastructure is expected to raise India’s GDP. In addition, income tax cuts are likely to encourage higher consumer spending, according to the agency.
Border Tensions Affect Pakistan More Than India
Moody’s noted that tensions along the India-Pakistan border will hurt Pakistan’s economy more than India’s. India has limited economic ties with Pakistan. It also pointed out that most of India’s farming and industrial areas are far from the conflict zones.
Defense Spending May Impact Economy
While Moody’s does not expect major disruption in India’s economic activity, it mentioned that increased defense spending could have some economic effects. The agency also said that if trade talks with the US go well, India might export more goods to the American market.
