Moody's Ratings suggest that India may face lower tariffs compared to other APAC countries, potentially attracting more investment and becoming a global manufacturing base.
While negotiations are expected to reduce tariffs and trade barriers bilaterally, uncertainty in trade policies poses challenges for investment decisions and disrupts trade.
Countries like Vietnam and Cambodia, affected by high US tariffs due to diversification of investment away from China, face elevated credit risks.
India, aiming to benefit from tariff-driven shifts, signed a free trade deal with the UK and is negotiating with the US for greater market access and duty concessions.