Rating agency Standard & Poor’s has served India an ultimatum: Improve gross domestic product (GDP) growth or face a downgrade. Moody’s has changed the outlook on the rating from ‘stable’ to ‘negative’. S&P forecasts growth of 5.1 per cent in 2019-20. Moody’s pegs growth at 4.9 per cent. Who would have thought even a couple of years ago that India’s GDP growth would fall below 6 per cent?
The agencies can’t be faulted for warning of a possible downgrade. The flow of news has been pretty grim. The Index of Industrial Production was down 3.8 per cent in October over last
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