Ratings agency Moody’s Investors Service has cut India’s economic growth forecast for 2019-20 to 5.8% from 6.8% saying the country now faces a broad-based slowdown. The projection is the most pessimistic yet and comes days after the Reserve Bank pared its FY20 growth projection to 6.1% from 6.8% estimated earlier.
The drivers of the deceleration are multiple, mainly domestic and in part long-lasting,” Moody’s said.“What was an investmentled slowdown has broadened into consumption, driven by rural financial stress and weak job creation. A credit crunch among non-bank financial institutions, major providers of retail loans in recent years, has compounded the problem.