Moody’s Cuts India’s FY16 Growth Forecast To 7%

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New Delhi, Aug 18:  Rating agency Moody’s Investors Service today lowered India’s growth forecast to 7 per cent for 2015, from 7.5 per cent projected earlier, citing monsoon concerns and cautioned that further risks to growth stems from slow pace of reforms. “We have revised our GDP growth forecast down to around 7 per cent, in light of a drier than average monsoon although rainfall was not as low as feared at the start of the season,” Moody’s Investors Service said in its ‘Global Macro Outlook for 2015-16’.

Saying that India’s growth outlook is resilient beyond short-term monsoon effects, Moody’s has retained the growth forecast for 2016 at 7.5 per cent.
“One main risk to our forecast is that the pace of reforms slows significantly as consensus behind the need for reform weakens once the least controversial aspects of the government’s plan have been implemented,” Moody’s said.