New Delhi: International rating agency, Moody’s Investors Service has reduced the growth rate of India to 9.1% for this fiscal year. It was at 9.5% earlier. The agency said that the rising fuel prices and fertilizer import bill could limit the government’s capital expenditure.
The US based agency said that the economy of the country has recovered from the national lockdown of 2020 and the second wave of the Covid-19 pandemic. The GDP growth forecast for 2023 has been retained at 5.5%. In February, the agency predicted 8.4% growth in fiscal year 2022-23 and 6.5% growth in fiscal year 2023-24. The year-end inflation for India has been projected at 6.6% in 2022.
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According to the data released on its ‘Global Macro Outlook 2022-23 (March 2022 Update)’, the agency claimed that economic growth will fall due to the Russian invasion of Ukraine. The Russian invasion has affected the global economy in three ways- surge in commodities prices, risks to global economy from financial and business disruption and dent in sentiment due to heightened geopolitical risks.
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