Overview

• Moody’s kept India’s long-term local- and foreign-currency issuer ratings and local-currency senior unsecured rating at Baa3 with a stable outlook, and affirmed the short-term local-currency rating at P-3.
• The agency projects GDP growth of about 6.5% in FY26 and expects India to remain the fastest-growing G20 economy.
• Moody’s judges the 50% US tariff regime to have a limited near-term impact on growth but warns it could hinder moves into higher value-added manufacturing over time.
• The agency does not expect higher H‑1B fees or potential outsourcing levies in the US to significantly dent services exports or workers’ remittances, keeping current account risks contained.
• India’s long-term bond ceilings were left unchanged at A2 for local currency and A3 for foreign currency, reflecting modest external imbalances, a large government footprint and only moderate policy predictability.