Ratings agency Moody's on Tuesday cut its forecast for India's GDP growth for the current financial year to 0.2 per cent. The forecast is a downward revision of its March projection, when Moody's had predicted a 2.5 per cent growth for India's economy. With this, Moody's joins the list of agencies which has cut its growth projection for India amid the nationwide lockdown due to the coronavirus pandemic, which has led to significant impact on the economy.
As recently as on Monday, India Ratings and Reserach had revised its economic growth forecast for the current financial year to 1.9 per cent, the lowest in the last 29 years, adding that if the lockdown is extended beyond mid-May, the economy may witness a contraction.
Moody's in its March forecast had revised the projection to 2.5 per cent from an earlier forecast of 5.3 per cent, predicting that India is likely to see a sharp fall in incomes.