By Admin 
Moody on indian economy: Global rating agency Moody’s Rating is full of full confidence in the Indian economy. He said in his estimate on Wednesday that despite American tariffs and global business challenges, India is in good position to better deal with its negative impact. The reason for this is the domestic growth driver and low dependence on exports are supporting the economy.
A statement issued by Moody’s Ratings said that government steps to promote private consumption, expand manufacturing capacity and increase spending on infrastructure will help in compensating for the weakening scenario of global demand. Reduction in inflation leads to a possibility of cutting interest rates, which will give more support to the economy. There will be facility in giving loans from cash in the banking sector.
Moody’s trust in Indian economy
Moody’s said, “India is in a better position in dealing with American tariffs and global trade challenges compared to many other emerging markets, which emphasize strong internal growth factors, large domestic economy and low dependence on goods trade.”
The rating agency had reduced India’s economic growth estimates from 6.7 percent to 6.3 percent earlier this month. The agency changed the estimates after the situation arising out of the announcement of an increase in the US tariff.
Effect of Indo-Pak tension
The global rating agency further says that the kind of tension that has been seen after the Pahalgam attack between India and Pakistan, it will have a big impact on Pakistan’s economic growth, while the influence in India is very limited. The agency said that even if there is tension between the two neighboring countries, it will not have much impact on India’s economic activities, because trade between countries is very limited days.
Significantly, on May 2, the tariff was announced by US President Donald Trump. However, after that, except China, other countries of the world, while braking for 90 days on the rates of tariffs, retained a tariff of 10 percent. However, some areas were exempted from it while high tariff rates have been imposed on Indian steel and aluminum.
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