Laborers carry items in Delhi, India, on June 9, 2021, as the local wholesale business reopened amid easing COVID-19 restrictions. (Xinhua/Partha Sarkar)
The cut in India's growth projections has been attributed to higher inflation, high interest rates and slowing global growth, which Moody's believes will dampen economic momentum more than it had expected.
NEW DELHI, Nov. 12 (Xinhua) -- International credit rating agency Moody's on Friday slashed India's gross domestic product (GDP) growth projection for 2022 to 7 percent, on expectation that global slowdown and high domestic interest rates would dampen the overall economic momentum.
The cut in India's growth projections has been attributed to higher inflation, high interest rates and slowing global growth, which Moody's believes will dampen economic momentum more than it had expected.
Vendors resume business as the COVID-19 restrictions ease at one of the oldest market in Bangalore, India, July 16, 2021. (Str/Xinhua)
Besides, the credit rating agency said that the weakening Indian rupee and high oil prices would continue to exert upward pressure on inflation.
This is the second time in the past two months when Moody's has cut India's growth estimates for 2022. In September it cut projection for the year to 7.7 percent from 8.8 percent pegged in the month of May.
The credit rating agency said it expects India's growth to decelerate to 4.8 percent in 2023, and then to rise to 6.4 percent in 2024.
According to Moody's, in the 2021 calendar year the Indian economy had grown 8.5 percent.■
