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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 ..
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
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 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