According to the Global Macro Outlook 2020-21 released on Friday, Moody’s Investors Service has slashed India’s 2020 GDP growth estimates by more than half to 2.5%, as the economy is likely to take a hit following the 21-day lockdown announced by Prime Minister Narendra Modi earlier this week.
The US-based ratings agency had downgraded the growth forecast to 5.3% for 2020 just less than a month ago.
“A general lack of social safety nets, weak ability to provide adequate support to businesses and households, and inherent weaknesses in many major emerging market countries will amplify the effects of the coronavirus-induced shock.
The global ratings agency maintained its estimate of 5.8% growth for India in 2021.
The latest growth reduction of 2.2% is in sharp contrast to the previous downgrade of 0.1%.”