Negative news has come for the Indian economy facing Economic slowdown. Rating agency Moody’s Investors Service has lowered India’s rating. Moody’s has reduced its outlook about India from ‘stable’ to ‘negative’.
Moody’s says that the risk has increased in the Indian economy than before, so it has reduced the rating. Moody’s outlook gives an idea of how effective the government and policies of a country are in combating economic weakness.
It is worth mentioning that in October itself, Moody’s Investors Service had reduced the GDP growth estimate to 5.8 per cent in 2019-20. Moody’s had earlier released an estimate of 6.2 percent growth in GDP.
Even before this, many rating agencies have reduced their estimate about the growth in the Indian economy and the outlook here. In the April-June quarter, India’s GDP growth has been just 5 percent, which is the lowest since 2013.
Due to weak demand and reduced government spending, the economy is not able to grow. There was 8 percent growth in GDP in the same period a year ago.
In October, the rating agency Fitch lowered its GDP growth forecast for this fiscal year 2019-20 to just 5.5 per cent. Fitch said that the growth rate could reach a six-year low due to a sharp decrease in loan disbursement of banks.
This is a major reduction in the growth estimate, because in June earlier, Fitch had released a 6.6 percent increase in GDP for the financial year.
In September, the rating agency CRISIL claimed that the economic slowdown in India has been much broader and deeper than the Andesha. Then Crisil also lowered GDP growth estimates. According to Crisil, the country’s GDP growth is expected to be 6.3 percent in 2019-20.
Let us tell you that the Modi government has set a target of making the country a $ 5 trillion economy in the next five years, but experts say that it should have a growth rate of 9% per annum for several consecutive years.