Moody's slashes FY20 growth forecast to 4.9% on weak household consumption

Moody’s Investors Service has lowered India’s gross domestic product (GDP) growth projection for the 2019-20 fiscal year to 4.9 per cent from 5.8 per cent, citing weak household consumption. 

The rating agency said slower economic growth over the past few quarters would dent the debt repayment capacity of households and hurt retail loan quality. 

Private-sector banks have a larger exposure to retail loans and may be more at risk. However, the increase in non-performing loans (NPLs) will likely be gradual.

Moody’s, in a statement, said India's growth had decelerated as an investment-led slowdown had now broadened into weakening consumption. Financial stress among rural