Moody’s cuts India’s GDP growth forecast to 5.8% for FY20

Moody’s Investors Service on Thursday cut India’s gross domestic product (GDP) growth forecast for 2019-20 to 5.8% from the earlier estimate of 6.2%. It attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation.

“The drivers of the deceleration are multiple, mainly domestic and in part long-lasting,” the ratings agency said in its report.

It expects growth to pick up to 6.6% in FY21 and around 7% over the medium term.