New Delhi: Rating agency Moody’s Investors Services has reduced India’s growth rate forecast to 9.6 percent. Moody’s had earlier given a growth rate estimate of 13.9 percent. Even though the rating agency has projected a growth rate of 9.3 percent for the current year, but in view of the decline in GDP growth rate to 7.3 in the financial year 2020-21, the actual growth rate will remain 2.3 percent. In the financial year 2019-20, the growth rate was 4 percent. At the same time, in the first quarter of the financial year 2020-21, there was a decline of 23.9 percent in the growth rate.
Earlier, Moody’s had forecast a growth rate of 9.3 percent in the financial year 2020-21. But the second wave of Corona has increased the risk of India’s credit profile. Moody’s report named ‘Macroeconomics-India’ states that the lockdown imposed in April and May due to Covid stopped the pace of economic activity. According to Moody’s, ‘The second wave of the virus has created uncertainty. However, it is likely that this economic loss will remain only between the quarter of April to June.
