Moody's cuts India's FY22 GDP forecast to 9.3%; rules out rating upgrade

Owing to Covid pandemic, rating agency sees India's general govt deficit at 11.8% of GDP in FY22 as against previous forecast of 10.8%

Rating agency Moody’s has cut India’s gross domestic product (GDP) forecast for FY22 to 9.3 per cent from the earlier projection of 13.7 per cent and has ruled out a sovereign rating upgrade – at least for now. 

The downward revision in GDP estimates comes on the back of a second wave of Covid infections across the country, which have triggered localised lockdowns and mobility curbs, except for essential services. 

“As a result of the negative impact of the second wave, we have revised our real, inflation-adjusted GDP growth forecast down to 9.3 per cent from 13.7 per cent for