One after the other, 3 agencies said this, nothing will deteriorate India with Trump Tariff! – rating agencies bully

Discussions about trade war are intensified around the world. But its impact on India’s economy is expected to be limited. This week, three major rating agencies, S&P Global, Fitch Ratings and Moody’s Rating have re -repeated the estimate of maintaining confidence in India’s growth rate. They say that India will suffer very little due to American tariffs. At the same time, India’s GDP growth has been expected to be fast for this year and next year as well as 2026-27.

S&P Global Ratings has estimated India’s GDP growth to be 6.7% in 2024-25, saying that India will be the fastest growing economy in the Asia-Pacific region and the impact of tariffs will be limited by the impact of low dependence on the US.

S&P’s trust intact
In these conditions, companies present in the country are also likely to benefit from this situation. The report said that global conditions can have a mild impact on the income of Indian companies. But due to the way Indian companies have strengthened the financial situation by improving the operational level in the last few years, they are capable of tolerating this pressure.

According to S&P, the growing economy, increase in consumer spending and better infrastructure will also strengthen companies. The S&P report said that Indian companies are safe due to strong growth and credit quality and most companies will focus on onshore funding due to increasing liquidity. IT services, chemical and auto sectors are the most dependent on American markets. But it has also been said that there is no effect of tariff on services.

Fitch said- ‘Bright is Future’!
Fitch Ratings have also estimated India’s GDP growth to be 6.5% for 2025-26. However, there is a risk about America’s aggressive trade policy. But due to low dependence on India’s external demand, it has been estimated to be safe. It has been said in the report that in the budget, tax free income allowed and revised tax slab will increase the expenses of customers.

The rating agency has increased the growth estimate of 2026-27 by 6.3%. According to the report, the business confidence remains strong and the bank lending is constantly getting double digit growth. The report has expected a decline in inflation in the coming months. It said that in 2025-26 and 2026-27, the capex will rise and inflation rates can come up to 4% by the end of 2025, due to which the policy rate is likely to be cut twice more.

OECD expressed fast growth estimate
On the other hand, the Global Economic Organization OECD has warned that trade war may increase due to US protectionist policies. The report said that global GDP growth in 2025 could be limited to 3.1%, which was estimated to be 3.3% earlier. It is expected to reduce the growth rate of the US to 2.2% and is expected to grow 4.8% in China in 2025 and 4.4% in 2026.

However, it is estimated to have a limit of 6.4% in the current business year and 6.6% growth rate in 2025-26, saying its impact on India is limited. But it has also been clarified in the report that the Indian economy will not be completely baseless if the global trade war situation occurs. OECD says that India is currently in better position due to its strong domestic market and policy support.