InvestorQ : Why has Moody’s Investor Services downgraded the full year growth for Indian GDP to 2.5%? What could be the consequences of such a move?
Aashna Tripathi made post

Why has Moody’s Investor Services downgraded the full year growth for Indian GDP to 2.5%? What could be the consequences of such a move?

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Tisha Malhotra answered.
1 year ago
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Yes, Moody’s slashed India’s economic growth projection for calendar year 2020 from 5.3% to 2.5% due to COVID-19 outbreak. They expect the economy to be deeply affected by the lockdown and the demand and supply shock. Moody’s pointed out that credit flow to the economy was already severely due to liquidity constraints and the lockdown will hit production and services deeply. However, the agency has also pointed out that the slump in international crude prices will provide some relief. At the same time, CRISIL also cut its growth estimate for India for FY 2020-21 to 3.5% from 5.2%. A lot will depend on how the aftermath is handled.

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