Moody's slashes India GDP growth to 2.5% in 2020

                     

Moody's slashes India GDP growth to 2.5% in 2020

Moody's Investors Service has slashed its estimate of India's GDP growth to 2.5% during the 2020 calendar year from an earlier estimate of 5.3% due to rising economic cost of the coronavirus pandemic.

Earlier this month, the rating agency had revised its estimate to 5.3% from 5.4% in February and said the growth could slow down to 5% if the virus was not contained in its previous update.

Moody's said in the report that, at the 2020 estimated growth rate, a sharp fall in incomes in India is likely, further weighing on domestic demand and the pace of recovery in 2021.

"In India, credit flow to the economy already remains severely hampered because of severe liquidity constraints in the bank and non-bank financial sectors," Moody’s said.

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