Curtailed access to US mkt to diminish Indias mfg sector prospects: Moodys
PTI
Last Updated:
New Delhi, Aug 4 (PTI) Moody's Ratings on Monday said curtailed access to the US market will diminish prospects for India to develop its manufacturing sector, but the country's domestic demand will remain resilient to these external pressures.
US President Donald Trump has announced a 25 per cent duty on imports from India, which will come into effect from August 7 (9.30 am IST). These will be over and above the existing standard import duty in the United States.
On top of the import duty, Trump has announced imposing a 'penalty' on India for Russian imports. However, the rate of penalty is yet to be announced.
Moody's Ratings, Senior Vice President, Christian de Guzman said the revised tariff rate assessed on Indian goods is significantly above those from other major exporters in the APAC (Asia-Pacific) region, many of which have duty rates between 15 per cent and 20 per cent.
'Curtailed access to the largest economy globally diminishes prospects for India's ambitions to develop its manufacturing sector, particularly in higher value-added sectors such as electronics," Guzman said.
The higher tariffs relative to other countries also disadvantaged India as it vies for a greater share of trade and investment flows away from China, which has been subject to even more severe tariff treatment by the US, he added.
India and the US are currently negotiating a bilateral trade pact. The US is India's largest trading partner, accounting for 18 per cent of India's total merchandise exports in 2024. The USD 80 billion merchandise exports from India to the US are distributed in sectors which also form India's overall major exports.
Guzman said that we expect domestic demand to remain resilient to these external pressures as the Indian economy is less trade-reliant than other large economies in APAC.
'Moreover, the favourable outlook for India's services sector, whose scope and scale are unrivalled in the region, remains intact as associated services exports do not appear to be a major point of contention in bilateral relations with the US," Guzman added. PTI JD JD SHW
view comments
First Published:
August 04, 2025, 15:15 IST
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
an hour ago
- The Hindu
Canada airdrops aid into Gaza, says Israel violating international law
Canada said on Monday (August 5, 2025) it delivered humanitarian assistance through airdrops to Gaza, which has been under a devastating Israeli military assault for almost 22 months, with Ottawa again accusing Israel of violating international law. "The (Canadian Armed Forces) employed a CC-130J Hercules aircraft to conduct an airdrop of critical humanitarian aid in support of Global Affairs Canada into the Gaza Strip. The air drop consisted of 21,600 pounds of aid," the Canadian government said in a statement. The Canadian Broadcasting Corporation reported that it was Canadian Armed Forces' first humanitarian airdrop over Gaza using their own aircraft. The Israeli military said 120 food aid packages for Gaza's residents were airdropped by six countries, including Canada. The other five were Jordan, the United Arab Emirates, Egypt, Germany and Belgium. Canada said last week it plans to recognise the State of Palestine at a meeting of the United Nations in September, ratcheting up pressure on Israel as starvation spreads in Gaza. Canada also said on Monday that Israeli restrictions have posed challenges for humanitarian agencies. "This obstruction of aid is a violation of international humanitarian law and must end immediately," Canada's government said. The Israeli embassy in Ottawa had no immediate comment. Israel denies accusations of violating international law and blames Hamas for the suffering in Gaza. Israel cut off food supplies to Gaza in March and then lifted that blockade in May - but with restrictions that it said were needed to prevent aid from being diverted to militant groups. President Donald Trump also claimed Hamas militants were stealing food coming into Gaza and selling it. However, Reuters reported late last month that an internal U.S. government analysis found no evidence of systematic theft by Hamas of U.S.-funded humanitarian supplies. Israel says it is taking steps for more aid to reach Gaza's population, including pausing fighting for part of the day in some areas, allowing airdrops and announcing protected routes for aid convoys. The latest bloodshed in the decades-old Israeli-Palestinian conflict was triggered in October 2023 when Hamas attacked Israel, killing 1,200 and taking about 250 hostages, Israeli tallies show. Gaza's health ministry says Israel's subsequent military assault has killed over 60,000 Palestinians. It has also caused a hunger crisis, internally displaced Gaza's entire population and prompted accusations of genocide at the International Court of Justice and of war crimes at the International Criminal Court. Israel denies the accusations.
Indian Express
an hour ago
- Indian Express
‘Turned Adivasi assertion into a political force that birthed state': Shah to Rajnath, Mamata to Stalin — tributes pour in for Soren
Union Home Minister Amit Shah, Defence Minister Rajnath Singh, Chief Ministers and other leaders across the political spectrum paid tribute to Jharkhand Mukti Morcha co-founder and former Chief Minister Shibu Soren who died Monday. Shah said in a post on X that Soren 'struggled for decades for the rights and empowerment of the tribal community in Jharkhand'. 'With his simple personality and humble nature, he connected with the masses,' Shah wrote. Singh said Soren was counted among the towering leaders of Jharkhand who struggled throughout their lives for the rights and empowerment of the weaker sections of society, especially the tribal community. 'He always remained connected to the land and the people,' he said. West Bengal Chief Minister and TMC chief Mamata Banerjee said Soren's death has brought a chapter of Jharkhand's history to an end. BJP leader and Assam Chief Minister Himanta Biswa Sarma said Soren's life was dedicated to the well-being of the deprived, tribals, and labourers. Tamil Nadu Chief Minister M K Stalin wrote on a social media post, 'Thiru Shibu Soren's life was defined by relentless resistance against exploitation and an unshakeable commitment to social justice. As one of the key architects of Jharkhand's statehood movement, he transformed decades of Adivasi assertion into a political force that gave birth to a new state.' Telangana Chief Minister and Congress leader Revanth Reddy hailed Soren's struggles for the formation of Jharkhand and his efforts to address the problems of tribals. JD(U) leader and Bihar Chief Minister Nitish Kumar said Soren's 'significant contribution to Jharkhand's politics is noteworthy'. 'His passing has caused an irreparable loss not only to Jharkhand but also to the political and social spheres of the entire country,' Kumar wrote. RJD president Lalu Prasad spoke of 'memories of our joint struggles' for achieving 'social justice and empowerment of deprived classes'. Uttar Pradesh Chief Minister Yogi Adityanath said the former Jharkhand chief minister dedicated his life to the upliftment of tribal society. BJD chief and former Odisha CM Naveen Patnaik, said Soren would be remembered for his dedicated fight for the rights of tribal and marginalised people. Meghalaya Chief Minister Conrad K Sangma said Soren was a towering figure in Indian politics and a dedicated statesman who served the people with unwavering commitment.
India.com
an hour ago
- India.com
How The U.S. Rewired Pakistan's Air Force; Why That Legacy Still Matters Against India
New Delhi: When Indian jets pounded Pakistani positions under Operation Sindoor, Islamabad's narrative tried to flip the script. Claims of tactical success echoed through Pakistani media, even as damage reports told a different story. But behind these optics, Pakistani defence analysts are pointing to a system that did not come from China, but from the United States nearly 70 years ago. Defence portal Quwa highlighted how the foundations of Pakistan's air force still rest on operational practices and doctrine handed down by the United States as far back as the 1950s. The report claims that what many today call 'software', mindset, structure and operational culture, was installed in the early days of the Pakistan Air Force (PAF) by American advisors. That legacy has shaped PAF's command philosophy to this day. It even influenced the decision to move the Air Force Headquarters from Rawalpindi to Peshawar, giving the force its own command ecosystem, distinct from the army's shadow. How America Gave PAF Its Operational 'Software' According to Quwa, in the early 1950s, Pakistan's air force lacked both equipment and a professional framework. The turning point came with the 1950 Mutual Defense Assistance Agreement with the United States. Under this, Washington not only provided F-86 Sabre aircraft to Pakistan but also embedded an entire operational doctrine into the PAF. Considered the architect of a modern PAF, then Air Marshal Asghar Khan recognised that the United States was sending jets as well as exporting a full system. This included depot-level aircraft maintenance, rather than the traditional squadron-level model; strict safety regulations, based on U.S. Air Force protocols; and clearly separated departments for operations, maintenance and administration. This model replaced the older British system and gave Pakistan's air force an American-style command structure that is still in use today. According to Quwa, this is the backbone that allows the PAF to integrate foreign fighter jets, including the Chinese J-10CE, into its arsenal smoothly. The report argues that this inherited mindset enables faster pilot adaptation and more coherent training cycles, which translates into better performance during real combat situations. A Quiet Nod to the U.S., Not China While Pakistani media has hyped up the role of Chinese-origin J-10CE fighter jets in countering India's Rafales, Quwa takes a more nuanced position. It suggests that the real enabler was not Chinese technology, but American methodology. The systems laid down decades ago by the United States, it claims, allow the PAF to function as a streamlined and adaptable air force, something its regional rivals have had to build from scratch. This legacy also explains the PAF's ability to quickly operationalise new platforms. Pilots transitioning to newer aircraft often show higher mission-readiness because the doctrine standardises procedures across the force. And it was this very consistency, Quwa argues, that allowed Pakistan to mount any kind of coordinated air response during India's strikes. What Really Happened in the Skies? Despite Pakistan's claims, the outcomes of the recent aerial confrontations tell a more complex story. Islamabad managed to shoot down one Indian aircraft, but failed to intercept or prevent Indian strikes on nine strategic sites in Pakistan-occupied Kashmir (PoK). Indian Rafales inflicted heavy damage. In military terms, Quwa concedes, these results raise questions. One of the contributing factors was a misjudgement by Indian forces regarding the range of China's PL-15 missiles, a gap in calculation that Pakistan used to its advantage. Even then, say Indian analysts, PAF's performance could only be counted as successful if it had prevented India's deep-penetration airstrikes, not merely retaliated after the fact. A Legacy That Still Shapes Air Battles Pakistan's narrative of victory, critics say, may not hold up under scrutiny. But the story that emerges from Quwa's reporting is not about flashy dogfights or headline-grabbing missile launches. It is about how a 70-year-old framework continues to define one of South Asia's most professionalised air forces. In the end, as Quwa puts it, it was not Chinese, but American 'software' (a system of discipline, structure and long-term strategic thinking) that made the real difference.
