Pressure on India’s credit profile is increasing due to low growth, high debt burden and weak financial system. The situation has worsened due to the corona virus epidemic. These things have been said by the world’s famous rating agency Moody’s. Moody’s has also revised the estimate of the country’s GDP growth rate.
Moody’s warns on the country’s economy, GDP deteriorated due to low growth-more debt
This time Moody’s has said that the GDP growth rate will fall to 11 per cent in the negative. Let us tell you that Moody’s had earlier predicted a 4 per cent decline in the negative. Moody’s cautioned that the mutual situation could worsen the fiscal situation due to deep pressure in the economy and the financial system. This may increase the pressure on the credit profile.
Crisil was forecast to fall by 9 per cent
Earlier, rating agency Crisil said that India’s gross domestic product (GDP) could decline by 9 per cent in FY 2020-21. Crisil has drastically changed its earlier estimate. Earlier in the estimate released in May, Crisil had said that the GDP could fall by 5 percent in this financial year. Crisil said that if GDP fell by 9 percent, it would be the biggest decline since the 50s.
All rating agencies are disappointed
Before this, several rating agencies have released figures of 9 to 15 percent decline in the Indian economy in this entire financial year. Rating agency Fitch had released an estimate that the Indian economy could decline by 10.5 per cent this financial year due to the Corona crisis.