INSUBCONTINENT EXCLUSIVE:
Moody's kept growth expectation for 2019 remains unchanged at 7.5%.
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
The private investment cycle will continue to make a gradual recovery, as twin balance-sheet issues -- impaired assets at banks and
corporates -- slowly get addressed through deleveraging and the application of the Insolvency and Bankruptcy Code."It said ongoing
transition to the new Goods and Service Tax regime could also weigh on growth somewhat over the next few quarters, which poses some downside
risk to its forecast."However, we expect these issues to moderate over the course of the year," it said.(Except for the headline, this story
has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
