Moody’s cuts India’s growth forecast to 9.3 per cent

Moody’s Investors Service has cut India’s gross domestic product (GDP) forecast for 2021-22 to 9.3 per cent from the earlier projection of 13.7 per cent. The sharp decline in GDP estimates comes on the back of a second wave of Covid infections across the nation, which has resulted in localised lockdowns and mobility restrictions, except for critical services. As a result, the rating agency now forecasts a higher government fiscal deficit of about 11.8 per cent of GDP for the financial year 2022, as compared to the previous forecast of only 10.8 per cent.

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