Moody's reduces India's GDP growth in 2020 to 2.5%

NEW DELHI: Moody's Investors Service lowered its estimate of India's GDP growth for the 2020 calendar year on Friday to 2.5 percent from a previous estimate of 5.3 percent, due to the rising economic cost of the coronavirus pandemic.

This compares to 5% growth in 2019.

Moody's said that at the estimated growth rate for 2020, a sharp drop in revenue is likely to occur in India, further affecting domestic demand and the pace of recovery in 2021.

In India, the flow of credit to the economy is already severely hampered due to severe liquidity constraints in the bank and non-bank financial sectors, he said.