Moody's cuts India's FY20 growth projection to 4.9% citing weak consumption

Says weak household consumption in the country will curb economic growth and weigh on the credit quality of Indian issuers in a range of sectors

Moody's Investors Service on Monday said that India's weak household consumption will curb economic growth and weigh on the credit quality of Indian issuers in a range of sectors.

Moody's has lowered its GDP growth projection for India for the fiscal year ending March 2020 to 4.9 per cent from 5.8 per cent.

The major factors responsible for weakening economic growth were rural financial stress, low job creation and liquidity constraints, said Moody's in a report.

"What was once an investment-led slowdown has now broadened into weakening consumption, driven by financial stress among rural households on the back of stagnating