Rating bureau Moodys Investors Service on Monday lowered India’s growth estimation for 2020. The firm has defeated India’s GDP growth estimate for the year 2020 to 5.4 per cent, from 6.6 per cent earlier. The agency has also reduced GDP growth for 2021. It was fresh expected at 6.7%, which has now been diminished to 5.8%. The rating cuts have been made due to the sluggish reconstruction of the country’s market.
In an update to its Global Macro Outlook, the agency said that the global economy has been affected due to the coronavirus outbreak, it will also have an impact on the Indian economy. The agency said the recovery would be slower than anticipated. The agency said India’s economy has slowed down in the last two years, we are expecting a recovery from this quarter. We estimate that any recovery will be less than expected.
We have reduced GDP growth forecast for India from 6.6 to 5.4 per cent and for 2021 growth forecast from 6.7 to 5.8 per cent,” the agency said.