Moody’s Investors Service has cut the FY21 growth projection to zero per cent for India. Warning of a possible rating downgrade for the country subject to fiscal metrics “weakening materially”, the forecast rides on a prolonged or deep slowdown in growth. According to the global rating agency’s latest credit opinion, there are only limited prospects that the government would be able to restore stronger output through economic and institutional reforms. Moody’s, however, expects GDP growth to recover to 6.6 per cent in FY22. The global rating agency, in November 2019, revised its outlook for India from stable to negative.
