Moody's slashes India's GDP growth forecast for 2022 by 70 bps to 7%

Weak rupee, and high oil prices cited as reasons for the downward revision

Rating agency Moody’s on Friday slashed India’s gross domestic product (GDP) growth projections for 2022 calendar year to 7 per cent from 7.7 per cent estimated earlier citing global slowdown, elevated inflation, and rising domestic interest rates as dampeners for growth momentum in India.

The agency expects India’s growth to further decelerate to 4.8 per cent in 2023 and then to rise to around 6.4 per cent in 2024. 

The rating agency said rupee weakening and high oil prices that have exerted upward pressure on inflation have resulted in downward revision to India’s growth forecasts. “We expect the RBI to