Moody's

India could face pressure on the rupee, higher inflation and a widening current account deficit if the escalating Middle East conflict spikes energy prices and disrupts supplies, given its heavy dependence on crude and LNG imports from the region, according to Moody's Ratings. "India stands out among the large Asian economies that rely on crude and LNG from the Middle East," the rating agency said. The country imports about 46 per cent of its oil and natural gas requirements from the Middle East. Supplies from the region have been disrupted as the widening West Asia conflict has blocked the Strait of Hormuz, a key conduit for crude oil and LNG exports from the region. "Costly energy imports would weaken the rupee, raise inflation, worsen the current account balance and complicate monetary policy as well as fiscal management if they lead to expanded subsidies to help offset the economic shock," Moody's said in a note on oil supply shock in prolonged West Asia conflict. Strait of Hor

A uniform 15 per cent tariff, announced by US President Donald Trump, would benefit some Asia-Pacific economies that have faced much steeper country-specific levies, including China and much of Southeast Asia, Moody's Analytics said on Tuesday. But it will have a small impact on countries such as Japan, South Korea, and Taiwan (China), where the base rate is already 15 per cent, it said in a statement. "There is a lot of uncertainty, but we do know a few things. A uniform 15 per cent tariff would benefit some Asia-Pacific economies that have faced much steeper country-specific levies," it said. The US Supreme Court last week ruled against the Trump administration's country-specific tariffs after which Trump imposed 10 per cent tariffs on all countries for 150 days. He has also announced to increase it to 15 per cent. However, no order or proclamation has been issued so far in this regard. "The court ruling also raises questions about the recent trade deals made with India and ...

The economy is seen growing at 7.4 per cent in ‌the current financial year, with ​inflation likely to be near 2 per cent

The trade agreement with the European Union (EU) will help India diversify its trade relationships and provide greater market access to its exporters amid growing uncertainty due to high US tariffs, Moody's Ratings has said. The free trade agreement (FTA) between India and the EU was announced on January 27. It is likely to be signed and implemented this year only. "For India, the deal reflects its continued efforts to selectively diversify trade relationships while hedging against trade volatility arising from recent US tariff actions," Moody's said. It said that for the EU, the deal strengthens economic security by widening access to a fast-growing India while reducing vulnerability to disruptions in more concentrated trade relationships. "Although we expect limited near-term credit effects for India, the EU and individual member states, once ratified and implemented the FTA will be credit positive for both sides in raising trade volumes, enhancing the diversification of trade ..

Flags financial damage from revenue loss, compensation, DGCA fines

Moody's Ratings on Friday said with a 7 per cent GDP expansion in 2025 and 6.4 per cent in the next year, India will lead growth among emerging markets and across the Asia Pacific region. Moody's also said that India's domestic growth drivers underpin its economic resilience amid global uncertainty. Although the Indian rupee has continued to weaken against the dollar, most rated companies have active currency risk management or strong financial buffers, while investment-grade entities have demonstrated access to international capital markets. "India will lead growth among emerging markets and across the region, with GDP growing 7 per cent in 2025 and 6.4 per cent in 2026," Moody's Ratings said. Its projected average GDP growth in APAC (Asia-Pacific) will remain steady at 3.4 per cent in 2026 compared with 3.3 per cent in 2024 and expected growth of 3.6 per cent in 2025. On a weighted average basis, emerging markets will drive GDP growth in the region, with average growth of 5.6 p

In August 2022, Moody's even skewed its assessment of the euro zone's third-biggest economy toward a dramatic move to junk by shifting its outlook to negative

Moody's said that there are several risks ahead, including geopolitical tensions, trade disruptions, and unstable financial markets

The 40 per cent trans-shipment tariff by the US will create major compliance issues for companies in India and the ASEAN region, with high risks for sectors like machinery, electrical equipment and semiconductors, Moody's Ratings said on Tuesday. In July 31, US President Donald Trump announced a 40 per cent tariff on goods deemed to have been transshipped, beyond the broader country-level tariffs. Moody's, in its 'Trade Asia-Pacific' report, said it remains unclear how the Trump administration defines trans-shipment, but the measures appear to target products originating in China and shipping through third countries with lower tariffs. Stating that lack of clarity around trans-shipment tariff poses risks to ASEAN economies, Moody's said if the US maintains a narrow interpretation targeting only goods imported from China, minimally processed or re-labelled and re-exported to the US the economic impact on regional economies may be limited. However, a broader and more punitive ...

Moody's says GST rate cuts will boost consumption and ease inflation but warns of higher revenue loss, fiscal strain, and weak debt affordability for India

S&P Global upgraded ratings of 10 Indian banks and finance firms, including SBI, HDFC Bank and Tata Capital, a day after raising India's sovereign credit rating to BBB

S&P Global upgrades India's sovereign rating to BBB from BBB-, citing robust growth, improved monetary policy framework and fiscal consolidation despite tariff concerns

The government on Friday withdrew the Income Tax (Amendment) Bill, 2025, introduced in February to replace the 1961 IT Act.

Credit rating agency says India's manufacturing growth momentum and electronics competitiveness are at risk if tariff dispute with US persists

Moody's Ratings on Monday said curtailed access to the US market will diminish prospects for India to develop its manufacturing sector, but the country's domestic demand will remain resilient to these external pressures. US President Donald Trump has announced a 25 per cent duty on imports from India, which will come into effect from August 7 (9.30 am IST). These will be over and above the existing standard import duty in the United States. On top of the import duty, Trump has announced imposing a 'penalty' on India for Russian imports. However, the rate of penalty is yet to be announced. Moody's Ratings, Senior Vice President, Christian de Guzman said the revised tariff rate assessed on Indian goods is significantly above those from other major exporters in the APAC (Asia-Pacific) region, many of which have duty rates between 15 per cent and 20 per cent. "Curtailed access to the largest economy globally diminishes prospects for India's ambitions to develop its manufacturing sector

Moody's upgrades State Bank of India's baseline credit rating to "Baa3", citing expected improvement in capitalization. Profitability may moderate due to lending rate cuts in the near term

Moody's warns updated national emissions targets under NDCs may not limit global warming to under 2°C; credit risks tied to weak execution and external dependencies

The US dollar weakened broadly, hitting a more than one-week low against the safe-haven yen, Swiss franc and euro. Against the Japanese yen, the dollar was down 0.38 per cent at 145.06

Moody's downgrade, analysts said, was more to get the rating in sync with Fitch and S&P, who have already downgraded US' ratings.

Trump has argued that his economic agenda, centered on tax cuts, reduced regulations and sweeping tariffs to bring more manufacturing jobs to the US, would promote strong growth