Coronavirus impact: Moody's cuts India's growth forecast to 2.5% from 5.3%

Friday, Moody’s Investor Service reduced its estimate of India’s GDP growth in calendar year 2020 to 2.5% from a previous estimate of 5.3%, due to the increase in the economic cost of the coronavirus pandemic.

This compares to 5% growth in 2019.

Moody’s said that at the estimated growth rate in 2020, a sharp drop in revenues in India is likely, which will further weigh on domestic demand and the pace of recovery in 2021.

“In India, credit flows to the economy are already severely hampered due to severe liquidity constraints in the banking and non-bank financial sectors,” he said.

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