Current Affairs - Economy - Discussion

Moody’s Ratings, in its May 2025 update to the Global Macro Outlook, has revised India’s GDP growth forecast for the calendar year 2025 downward to 6.3%. The downgrade from the earlier estimate of 6.5% is attributed to rising global trade and policy uncertainty, particularly from evolving U.S. trade strategies, and heightened geopolitical tensions across multiple regions, including the India-Pakistan border and the South China Sea. Additionally, financial market volatility and tight global liquidity conditions have added to the economic risks. Despite this, Moody’s maintained India’s 2026 growth forecast at 6.5%, expecting conditions to stabilise over time.