Moody's Investors Service on Friday slashed its estimate of India's GDP growth for calendar year 2020 to 2.5 per cent from an earlier estimate of 5.3 per cent, citing rising economic cost of the coronavirus pandemic. That was sharply lower compared to the growth rate of 5 per cent in 2019.
Moody's said that at the 2020 estimated growth rate, a sharp fall in incomes in India is likely, further weighing on domestic demand and the pace of recovery in 2021.
"In India, credit flow to the economy already remains severely hampered because of severe liquidity constraints in the bank and non-bank financial sectors," it said.
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