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Moody's Forecasts India's GDP Growth to Decline to 6.4% in 2025.

Economy Business | Dated: 24 Feb 2025

In February 2025, New York (United States of America, USA)-based Moody’s (formerly known as Moody’s Analytics), a subsidiary of Moody’s Corporation, released its report titled "Asia-Pacific (APAC) Outlook: Chaos Ahead." According to the report, India's Gross Domestic Product (GDP) growth is expected to slow to 6.4% in 2025, down from 6.6% in 2024.

🎯 Key Highlights:

  • - The report cited several factors contributing to this slowdown, including global economic headwinds, new USA tariffs, and weakening international demand impacting exports, which pose challenges to India's economic expansion.
  • - Additionally, the report projected that India’s GDP will grow at 6.4% in both 2026 and 2027.
  • - The report highlighted that economic growth across the Asia-Pacific (APAC) region is expected to slow in 2025, primarily due to rising trade tensions and shifts in the global tariff landscape.

💡 Other Important Facts:

  • (i) The report projected that global growth will ease from an estimated 3.9% in 2024 to 3.7% in 2025 and further decline to 3.5% in 2026.
  • (ii) The report observed that most economies are still trailing their pre-pandemic growth levels, with China's GDP approximately 1.2% below its pre-pandemic trend, aligning with the global average. India lags by nearly 2% but remains better positioned than ASEAN economies, where GDP levels are 5% below pre-pandemic figures.

📚 Test Your Knowledge:

Recently, what is the projected GDP growth rate of India for 2025, according to Moody’s?

Correct Answer: 6.4%

🚀 Quick Recap:

About Moody’s

  • President: Stephen Tulenko
  • Headquarters: New York