Moody’s Investors Service on Friday slashed its estimate ofIndia’s GDP growth during 2020 calendar year to 2.5 per cent from an earlierestimate of 5.3 per cent, on account of the rising economic cost of thecoronavirus pandemic.
This compares to 5 per cent growth in 2019.
Moody’s said, at the 2020 estimated growth rate, a sharpfall in incomes in India is likely, further weighing on domestic demand and thepace of recovery in 2021.
“In India, credit flow to the economy already remainsseverely hampered because of severe liquidity constraints in the bank andnon-bank financial sectors,” it said.