Rating agency Moody’s Investors Service has once again lowered India’s economic growth forecast for 2022 to 7.7 per cent.
In May, it downgraded India’s GDP growth estimate for the current calendar year to 8.8 per cent from its earlier projection of 9.1 per cent in March.
“Our expectation that India’s real GDP growth will slow from 8.3 per cent in 2021 to 7.7 per cent in 2022 and decelerate further to 5.2 per cent in 2023 assumes that rising interest rates, uneven distribution of monsoons, and slowing global growth will dampen economic momentum on a sequential basis,” the global rating agency said.
“India’s economic growth before the Covid shock had materially slowed because of the impact of corporate-sector deleveraging on business investment. With the deleveraging complete, corporate-sector investment is showing early signs of a pickup, which could provide support to a continued business cycle expansion through several quarters, supported by investment-friendly government policies and the rapid digitization of the economy.”