Moody's Ratings, a finance servicing company on Wednesday stated that India is in a strong position to withstand the adverse impact of US tariffs and global trade disruptions, thanks to robust domestic growth drivers and minimal reliance on exports. In a report on India, the agency noted that government efforts to stimulate private consumption, enhance manufacturing, and boost infrastructure investment will help counterbalance the slowdown in global demand. Additionally, easing inflation could pave the way for interest rate cuts, providing further economic support, while the banking sector’s ample liquidity continues to enable lending.

"India is better positioned than many other emerging markets to deal with US tariffs and global trade disruptions, helped by robust internal growth drivers, a sizable domestic economy and a low dependence on goods trade," Moody's said.