Moody’s Ratings on Friday projected that India’s GDP growth could ease by around 30 basis points to 6% in the current fiscal if the US goes ahead with its plan to impose a 50% tariff from August 27.

The rating agency said resilient domestic demand and a robust services sector would help cushion the impact, but the extent of the slowdown will depend on how India responds to the higher US duties, which could influence growth, inflation, and the external balance.

On August 6, the US announced an additional 25% tariff on all Indian imports, doubling the total duty to 50% when combined with the existing levy, effective later this month.