Moody’s Investors Service lowered India’s growth estimate for the calendar year 2020 to 0.2 percent, compared to 2.5 percent in March.
new Delhi. Moody’s Investors Service lowered India ‘s growth estimate for the calendar year 2020 to 0.2 percent, compared to 2.5 percent in March. Moody’s expects India’s growth rate to be 6.2 percent in 2021. Moody’s reduced the G20 countries’ growth rate estimates by 5.8 percent during 2020 in the ‘Global Macro Outlook 2020-21 (updated April 2020)’. Moody’s said that the economic cost of shutting down of the global economy is increasing rapidly due to the corona virus crisis.
The report projected that the growth rate of the G20 countries would collectively decrease by 5.8 percent. Even after the reforms, the growth rate of most leading economies is expected to be lower than the level before the corona virus epidemic.
Moody’s said in its report that China’s growth rate could be one percent in 2020. Moody’s said, India extended the nationwide lockdown from 21 days to 40 days, but relaxed restrictions in rural areas for agricultural operations at the end of April. The country ensured that many parts of it remain free from viruses. India has made a phased plan to open various areas.
The economy will be hit by a lockdown of ₹ 10 lakh crore
Economic activity has been halted due to the ongoing lockdown to deal with the Coronavirus Pandemic. Due to this, the country’s economy is suffering a lot. Domestic rating agency Crisil has said that the lockdown to control the corona virus is expected to cause a total loss of Rs 10 lakh crore to the economy. This loss per person is up to Rs 7,000.
Amid the lockdown, the rating agencies continue to cut in the country’s GDP growth forecast. CRISIL lowered its estimate of India’s 2020-21 economic growth by almost half to 1.8 percent.
