US-India Trade Deal: Benefits and Global Risks, Warns Moody's

• Moody's warns that while a US-India trade deal offers benefits, rapidly distancing from Russian oil could have negative global consequences.
• US tariff cuts are credit positive for India's labor-intensive sectors like gems, jewelry, and textiles, boosting exports.
• A sudden shift by India from Russian crude oil could tighten global supply, leading to increased international oil prices and inflation.
• Moody's suggests that completely stopping Russian oil purchases is impractical for India and could hinder its economic growth.
• The agency advises India to gradually diversify its energy supply to maintain economic stability and energy security.

Why It Matters: US-India trade deal offers benefits, but rapid exit from Russian oil risks global price hikes and inflation.