By Admin 
Indian economy: After the terrorist attack on April 22 in Pahalgam, Jammu and Kashmir, the country’s economy is expected to slow down amid increasing tension with Pakistan. Moody’s Ratings said on 6 May that India’s economy could proceed with a slow speed of 6.3 percent in 2025 as compared to the last year’s 6.7 percent.
IMF and World Bank estimated
Earlier, the International Monetary Fund (IMF) and the World Bank had estimated 6.2 and 6.3 percent growth rate for India’s economy respectively.
The profound effect of these things on the economy
Rating agency Moody’s said in the May update of its global macro outlook, “Uncertainty on global economic policies is likely to have a bad effect on consumer, business and financial activities.” It further said, “It can further affect the tariffs and the restriction of some things can affect the policy uncertainty and business stress, especially in the US and China,” it said. Are, which will also affect the G20. It is estimated that in 2026 the Indian economy will perform better at the rate of 6.5 percent. ”
On what basis Moody’s guessed?
This global rating agency said, in addition to business uncertainties, increasing stress may slow down growth. The agency further said, geopolitical stress is another potential negative risk for our basic forecasts. In recent times, tension between India and Pakistan and the Philippines in South Asia and in the South China Sea has increased. Apart from these, some issues between Russia and Ukraine are left unresolved, there is also tension in the middle East.
Moody’s Ratings said, “The cost of investors and businesses is likely to increase, as they will take into account new geopolitical conditions while taking decisions, increasing the scope of their business/supplying raw materials.” However, Moody’s is optimistic on the price front and has estimated the inflation rate 4 percent in 2025 and 4.3 percent in 2026.
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