Moody’s Investors Service has cut its gross domestic product (GDP) growth forecast for India to 8.8% for calendar year 2022 (CY22) from its March estimate of 9.1%.
Reason: Rising inflation and interest rates will temper the economic growth momentum.
It projected inflation to be around 6.8% and 5.2% for 2022 and 2023, respectively. Earlier, the S&P Global Ratings had cut India’s growth projection for 2022-23 to 7.3 per cent, from 7.8 per cent earlier.