After RBI and ADB, the world's two major agencies Moody's and DBS have lowered the growth forecast of the Indian economy. Moody's Investors Services has reduced India's GDP growth forecast for 2019 to 5.6%. DBS Banking Group, a Singapore-based financial services company, has slashed India's growth rate from 5.5% to 5% in the current fiscal year 2019-20. Earlier, the Reserve Bank of India (RBI) also reduced the country's economic growth forecast from 6.1 to 5%. Moody's released a report on Friday saying that the slow growth rate of employment is showing an impact on consumption. The agency also said that the growth rate in 2020 and 2021 can be 6.6 and 6.7% respectively.

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There are challenges in the financial sector
DBS said in its report 'India Annual Scenario 2020' that this year the Indian economy has been dominated by a sharp decline in economic activity and challenges in the financial sector. It stated, 'This softening is due to many factors. This suggests that the pace of improvement may slow down in 2020 as well. DBS said favorable fundamental effects and easy monetary conditions could support demand. DBS said that India's GDP growth could come down to 5.8% in FY 2020-21.

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ADB also reduced growth rate estimates
Prior to Moody's and DBS, the Asian Development Bank (ADB) on Wednesday reduced India's economic growth forecast to 5.1%. For this, it attributed the lack of job opportunities, increased pressure on the rural sector due to poor crop and lack of debt. It had predicted the country's GDP growth to be around 6.5% in the next financial year due to favorable government policies.

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