Rating agency Moody's Investors Service still does not trust the Indian economy. In fact, Moody's has once again lowered its estimate of India's economic growth rate for the current financial year.
According to the rating agency, India's economic growth could be 4.9 percent in the current financial year 2019-20 due to sluggish consumption demand. Earlier Moody's estimate was 5.8 per cent. According to Moody's, "India's economic growth rate may be 6.3 percent in 2020-21". The rating agency had earlier released India's economic growth forecast of 6.6 percent in 2020-21.
What did Moody's say?
Moody's said in a report on consumption trend, "The slowdown in investment has slowed down the pace of economic growth and now the consumption slowdown has come down due to financial pressure of people in rural areas and slowing down the rate of employment generation. has gone." According to Moody's, corporate tax cuts, financial support to farmers and reduction in interest rates have not yet helped much in increasing consumption demand in India.
GDP at 6-year low
In the second quarter of the current financial year (2019-20), the GDP figure has reached 4.5 percent. This is the biggest decline in any one quarter in almost 6 years. Earlier, the country's GDP rate was at this level in the March 2013 quarter. The important thing is that the country's GDP has been falling for 6 consecutive quarters. However, all rating agencies believe that there may be some important announcements in the general budget to boost the economy. Let us know that the general budget is likely to be presented on 1 February. However, its formal announcement has not been made yet.
