Moody’s India GDP Forecast 2019: Rating agency Moody’s has slashed India’s GDP estimate for the current financial year. The rating agency has lowered its estimate to 5.6 per cent.
- Moody’s gave another blow to India, slashed GDP estimates.
- Moody’s lowered the economic growth forecast for the current fiscal from 5.8 per cent to 5.6 per cent.
- The agency has stated that the year 2020 and 2021 will see an increase in GDP.
New Delhi: Moody’s Investor Service on Thursday lowered India’s economic growth forecast to 5.6 percent. Moody’s has reduced India’s GDP estimate for the current fiscal from 5.8 per cent to 5.6 per cent. The agency says that the slowdown in GDP will be higher than the previous estimate.
The agency has said, ‘We have lowered India’s growth forecast. According to our estimates, where India’s GDP was estimated at 7.4 percent in 2018, it is estimated to be 5.6 percent in 2019.
The agency has stated that economic activities will increase in the year 2020. The growth rates in the year 2020 and 2021 are estimated to be 6.6 percent and 6.7 percent respectively. But in the current financial year, the previous economic growth rate will be less.
‘India’s economic growth rate has come down since mid-2018, GDP has come down from around 8 percent to 5 percent in the second quarter of 2019 and unemployment is increasing.’ The report said, “There has been a decline in investment activity before this, but at that time there was a boom in the economy due to strong consumption demand. The problem with the current sluggishness is that this time there is a decline in consumption as well.
Earlier, Moody’s had lowered India’s rating from static to negative. Significantly, a major decline in industrial production has been recorded in the month of October. Industrial growth declined by 4.3 percent in September. Which was 4.6 percent in September last year.