Moody’s cuts India’s GDP growth forecast

NEW DELHI: Moody’s Investors Service report on Wednesday has cut India’s GDP growth forecast to 7.3 per cent in 2018, from previous forecast of 7.5 per cent due to higher oil prices and tighter financial conditions. “The Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration. We expect GDP growth of about 7.3 per cent in 2018, down from our previous forecast of 7.5 per cent,” the report said. It, however, kept growth expectation for 2019 remains unchanged at 7.5 per cent. Moody’s further said: “On the domestic front, growth should benefit from an acceleration in rural consumption, supported by higher minimum support prices and a normal monsoon.”— IANS