Moody’s Cuts India’s 2025 GDP Forecast to 6.3% Amid Global Trade Uncertainty
In a cautious update to its Global Macro Outlook, Moody’s Ratings has revised India’s GDP growth forecast for the calendar year 2025 down to 6.3%, citing heightened global policy uncertainty, especially from the United States, persistent trade tensions, and increasing geopolitical risks as major contributing factors. The agency, however, retained its growth projection for 2026 at 6.5%, reflecting expectations of eventual economic stabilization.
Moody’s Ratings released its Global Macro Outlook 2025-26 (May Update), wherein it lowered India’s GDP growth estimate for 2025 from 6.5% to 6.3% due to Rising US policy and trade uncertainty, Geopolitical tensions (including India-Pakistan conflict), Global financial market volatility.
| Summary/Static | Details |
| Why in the news? | Moody’s Cuts India’s 2025 GDP Forecast to 6.3% Amid Global Trade Uncertainty |
| Agency | Moody’s Ratings |
| India’s GDP forecast (2025) | 6.3% (cut from 6.5%) |
| India’s GDP forecast (2026) | 6.5% (unchanged) |
| Main reason for downgrade | US trade uncertainty, geopolitical tensions |
| Global GDP concern | Slowing due to US-China tensions |
| RBI outlook | Likely to reduce policy rates |
Some places on Earth experience extreme cold that seems almost impossible to survive. In these…
For the first time since Independence, India is preparing to systematically measure household incomes and…
The Earth is a big and fascinating place, made up of large land areas called…
Reserve Bank of India has advanced its scheduled Open Market Operation (OMO) purchases. The central…
In a move reflecting India’s growing climate risks, the Reserve Bank of India has proposed…
Indian Railways has taken a major step towards smart and technology-driven railway stations. On January…