New Delhi, Aug. 8 -- India's strong domestic demand and the robust performance of its services sector will help cushion the economic impact of steep new US tariffs imposed as a penalty for continued imports of Russian crude oil, according to a report by Moody's Ratings.

The report however also said that, if India maintains Russian oil purchases despite the penalty, real GDP growth could slow by around 0.3 percentage points from its current forecast of 6.3 per cent for FY2025-26.

"We project that real GDP growth may slow by around 0.3 percentage points compared with our current forecast of 6.3 per cent growth for fiscal 2025-26 (ending March 2026). However, resilient domestic demand and the strength of services sector will mitigate the s...