Moody’s cuts India’s 2018 growth forecast to 7.3% from 7.5%

Moody’s cuts India’s 2018 growth forecast to 7.3% from 7.5%

News:

1. Moody’s Investor Service has lowered India’s GDP forecast of 7.5% by 2018 to 7.3%.

Important facts:

2. Other observations made by Moody’s Investor Service are:
   • Indian economy is recovering in cyclical nature.
   • Recovery of private investment cycle depends on recovery of twin balance sheet issue.
   • G-20 countries will grow 3.3% in 2018 and 3.2% in 2019.
   • Advanced economies will grow at a moderate 2.3% in 2018 and 2% in 2019.
   • G-20 emerging markets will remain the growth drivers, at 5.2% in both 2018 and 2019, down from 5.3% in 2017.
3. The GDP growth should be benefited from increase of rural consumption, higher minimum support price and a normal monsoon.
4. Risk factor to GDP growth:
   • Higher oil prices,
   • Tighter financial conditions,
   • Transition to Good and Service tax regime, and
   • Trade conflict between India and China.