Moody’s Investors Service has projected a new estimate of 11.5 percent reduction in India’s gross domestic product (GDP) in the current financial year. Earlier, Moody’s had forecast a 4 percent decline in the Indian economy. The rating agency said on Friday that India’s credit environment is being affected by low growth, high debt and weak financial system. These risks have increased due to the corona virus epidemic.
Moody’s said that due to deep pressure in the economy and financial system, the country’s financial strength may decline further. This can increase the pressure on credit. Moody’s said that it estimates that the Indian economy will decline by 11.5 percent in 2020-21. Moody’s has said that the Indian economy will register a growth of 10.6 percent in the next financial year 2021-22. Earlier, Fitch, a global rating agency, has forecast a decline of 10.5 percent in the Indian economy in the current financial year. Domestic rating agencies CRISIL and India Ratings have forecast a 9 per cent and 11.8 per cent decline in the Indian economy respectively in the current financial year.