Moody's cut India's GDP forecast for the current year to 9.1 percent from 9.5 percent before, citing a high fuel and fertiliser import bill as a reason for the government's limited capital spending.

India's growth is expected to be 5.4 percent in 2023, according to the rating agency's Global Macro Outlook 2022-23 (March 2022 Update) titled: Economic Growth to Suffer as Fallout from Russia's Invasion of Ukraine Grows.

Because India is a significant importer of crude oil, it is particularly sensitive to increasing oil prices, according to the report. Because India is a grain surplus producer, agricultural exports will gain from the current high prices in the short term.

"High gasoline and fertiliser costs would put a strain on government finances in the long run, perhaps reducing planned capital spending." "As a result of all of these factors, we've decreased our growth predictions for India by 0.4 percentage point for 2022." According to Moody's Investors Service, the GDP will increase by 9.1 percent this year.  The forecast changes, it added, take into consideration the somewhat better underlying momentum that the agency had not previously taken into account.

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