Moody's cuts India's growth projection to 7% in 2022 & 4.8% in 2023
By selvakumar
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The rating agency said the weakening rupee, high oil prices will continue to exert upward pressure on inflation.
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Moody's said it now expects India's GDP growth to slow to 7% in 2022 versus its previous estimate of 7.7%
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Then decelerate to 4.8% in 2023, before recovering to around 6.4% in 2024.The Reserve Bank of India expects 2022/23 growth of 7%.
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"We expect the RBI to raise the repo rate by another 50 bps (basis points).The Reserve Bank of India expects 2022/23 growth of 7%.
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The downgrade reflects a weaker outlook for domestic demand, which is expected to remain subdued due to weak investment activity and rising interest rates.
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"India's economy is likely to be buffeted by external headwinds, including higher crude oil prices and a depreciating rupee,
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" Moody's said. "However, we believe that these are temporary factors, as the fundamentals of the Indian economy remain strong."
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Moody's said the weakening Indian rupee and high oil prices will continue to exert upward pressure on inflation.