Just like last year Moody’s had downgraded the GDP growth of India to 5.4% from the 6.6 % projected by the Union ministry for finance. The numbers were exaggerated as per Moody’s and the actual figure will be hardly reaching 5.4%. The reassessment is a strong cue to the slower than expected recovery for the Indian economy, staggering on to a record-long slowdown.
Moody’s growth projections are based on the calendar year and as per its estimates, India’s GDP grew 5 percent in 2019. Moody’s said India’s economy has slowed rapidly over the last two years but it expects the economic recovery to begin in the current quarter.
The World famous financial services agency added that the Union Budget 2020 did not contain a significant stimulus to address the demand slump. “As similar policies in other countries have shown, tax cuts are unlikely to translate into higher consumer and business spending when risk aversion is high,” it said.