Moody's cuts India's 2025 GDP growth forecast to 6.3%

Global ratings agency Moody’s on Tuesday cut India’s economic growth estimate for the current fiscal year to 6.3%, down from 6.7% in 2024, citing trade uncertainties driven by the United States and heightened geopolitical tension with Pakistan, Moneycontrol reported.

“Uncertainty surrounding global economic policies is likely to take a toll on consumer, business and financial activity,” the ratings agency said in its Global Macro Outlook’s May update.

“Geopolitical stresses are another potential downside risk to our baseline forecasts,” it added, pointing toward tensions between India and Pakistan, China and the Philippines, the continuing war between Russia and Ukraine, and Israel’s offensive on Gaza.