America has imposed 50% tariff on Indian products. Under US President Donald Trump’s “pressure policy”, a unilateral 50% tariff was imposed on India. But now, the US rating agency has refuted this claim. In fact, according to a report by the American credit rating agency Moody’s, despite the US imposing tariffs of up to 50% on some Indian products, India has managed to increase its exports. India’s total exports grew by 6.75% in September, while goods shipped to the US declined by 11.9%. This shows that India has reduced its dependence on US-centric trade and expanded its reach to other markets. This means that India will no longer be completely dependent on America.
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Despite challenges such as global trade tensions and inflation, Moody’s Ratings has expressed a positive outlook for India’s economy. In its ‘Global Macro Outlook 2026-27’ report, the agency estimates that the Indian economy will continue to grow at an annual rate of about 6.5% for the next two years. The report also said that India will remain the fastest growing major economy among the G-20 countries during this period.
Inflation control and reduction in interest rates have played an important role in strengthening the Indian economy. The report said the Reserve Bank of India kept the repo rate steady in October, indicating that inflation is under control and growth can now get a boost. Meanwhile, the outlook for India among foreign investors also remains positive. Worth noting is that Moody’s has projected a growth of 6.5% for the Indian economy, while global GDP is projected to grow only 2.5-2.6% during 2026-27, while emerging economies may grow at around 4%. However, the Moody’s report also cautioned that private sector investment activity is yet to fully revive. Has happened. Domestic demand remains strong. Moody’s is an American credit rating agency and investors trust its reports. Headquartered in New York, this agency was founded by John Moody in 1909.
Domestic demand, strong foreign investment
The Moody’s report further said that strong foreign capital inflows and positive investor sentiment have provided financial protection to India from external shocks, which has significantly helped in maintaining liquidity. However, domestic demand remains the main engine of growth. Moody’s said private sector capital expenditure remains sluggish and large-scale business investment has yet to fully recover.
