New Delhi: Due to the ongoing economic downturn in the country, businesses are aghast. Jobs are going on a large scale. However, the government is still denying any such recession. But all the economic institutions around the world reject the government's claim. Leading global rating agency Moody's has also joined the episode. Moody's Investors Services has projected India's growth rate to be less than six per cent in the current financial year (2019-20).
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Moody's has lowered India's GDP growth estimate to 5.8 per cent from the earlier 6.2 per cent. The agency says that due to some long-term impact factors, the slowdown in the Indian economy is expected to be slightly stretched. Last week, RBI also reduced the GDP growth estimate for the current financial year to 6.1 per cent after a review meeting of monetary policy.
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Moody's stated in his report that the real cause of sluggishness is the lack of investment, which later showed an impact on consumption due to lack of employment generation and financial crisis in rural areas. The agency said, 'There are many reasons for the softening and most of them are domestic and some have long term effects. The growth rate could later accelerate to 6.6 per cent in 2020-21 and around seven per cent in the medium term. The agency said, according to the international standard, the increase in real GDP by five per cent is relatively high, but in the context of India it is low.
