Moody's Warns: India's Fiscal Space Shrinking Due to Tax Cuts, Less Policy Support!

Overview

Moody's Ratings has flagged that India's fiscal space is tightening, with recent tax cuts weighing on revenue growth and reducing the government's capacity for economic support. Lower collections are pressuring fiscal consolidation, noted Martin Petch of Moody's. Despite these concerns, Moody's projects India's GDP to grow 7% in 2025, supported by domestic demand.