Moody’s Cuts India’s 2025 Growth Forecast to 6.3%

Moody’s Ratings, a global credit rating agency, has reduced India’s expected GDP growth for the year 2025 from 6.5% to 6.3%. This means the agency believes India’s economy will grow slightly slower than what was expected earlier.

Moody’s said this change is due to problems in the global economy, such as uncertain U.S. policies, lower global trade, and rising tensions in the region, especially between India and Pakistan. These factors could affect businesses and investors, leading to a slower economy.

Even though growth for 2025 is lowered, Moody’s is still positive about India’s future. It expects the Indian economy to grow by 6.5% in 2026 as conditions improve and domestic demand stays strong.

The agency also said that the Reserve Bank of India (RBI) might lower interest rates if needed, especially because inflation is expected to stay around 4% next year.

Moody’s also cut growth forecasts for other big countries — for example, the U.S. growth for 2025 is now expected to be only 1%, and China’s is reduced to 3.8%.

Overall, India is still doing better than many countries, but Moody’s warned that India must handle both local and global challenges carefully to keep its economy on track.