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India: Moody's Lowers Economic Growth Forecast

1 MIN READOct 10, 2019 | 15:47 GMT

What Happened: Moody's Investors Service projects a slower economic expansion in India, trimming its growth outlook from 6.2 percent to 5.8 percent for the fiscal year ending March 31, 2020, Reuters reported Oct. 10. The agency cited decreasing domestic consumption, weakening job growth and a credit crunch in its revised projections.

Why It Matters: A 5.8 percent growth rate would be a full percentage point lower than the rate India experienced in its previous fiscal year. The Indian government is attempting to reverse the slump by reducing corporate taxes and cutting interest rates. Prime Minister Narendra Modi made economic reinvigoration a key focus of his reelection campaign.

Background: India is Asia's third-largest economy, behind China and Japan, but its growth has continued to cool over the past three fiscal years.

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