India’s manufacturing may suffer but demand resilient, says Moody’s

Moody’s Ratings on Monday said curtailed access to the US market will diminish prospects for India to develop its manufacturing sector, but the country’s domestic demand will remain resilient to these external pressures. Moody’s Ratings Senior Vice President, Mr Christian de Guzman, said the revised tariff rate assessed on Indian goods is significantly above those from other major exporters in the APAC (Asia-Pacific) region, many of which have duty rates between 15% and 20%. Mr Guzman said it expects domestic demand to remain resilient to these external pressures as the Indian economy is less trade-reliant than other large economies in APAC. Moreover, the favourable outlook for India’s services sector, whose scope and scale are unrivalled in the region, remains intact as associated services exports do not appear to be a major point of contention in bilateral relations with the US, as per a report.

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