Moody’s
Rating agency Moody’s Ratings has said that increasing tariffs on countries around the world by US President Donald Trump will increase uncertainty in the global market. This uncertainty may adversely affect Asian countries, especially India’s economic growth. According to the rating agency, this can weaken business confidence and consumer spirit, which will affect domestic demand and investment. Significantly, US President Donald Trump has postponed the counter -charges levied on other countries except China for 90 days, although the original 10 percent customs duty will still be applicable.
Growth speed will be sluggish
Nikki Dang, Senior Vice President of Moody’s Ratings, stated that the US-China stress and the sluggishness in China’s economy create major negative risk for the growth possibilities of the Asian sector. Economy with large domestic markets like India may get some benefits, but major changes in investment will be a long -term process. Moody’s Analytics, an associate of Moody’s, has now reduced India’s estimated growth rate from 6.4% in February to 6.1%. This deduction has been made in view of global trade instability and a possible decline in domestic demand.
Indo-American Trade Agreement
According to experts, this 90-day relief period provides an important opportunity to carry forward the proposed bilateral trade agreement (BTA) between India and the US. The two countries are targeting to increase mutual trade from $ 191 billion to $ 500 billion by 2030 and its first phase is planned to be completed by September-October 2025. Dang said that the current developments indicate that the world trade system, which was previously belief and rule-based, is now in the era of change. This can have a profound effect on the global economy.
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