Moody's Analytics has scaled back India's GDP growth forecast for 2012, citing lack of fiscal or monetary action to revive the sputtering domestic economy amid concern about agriculture output following poor monsoon rains.
Moody's research wing has lowered GDP growth projection for the current year to 5.5% and for 2013 to 6% from 6.2% earlier.
"There are two main reasons for the revisions. The first is the slowdown has been sharper and more broad-based than anticipated and is now deeply entrenched across all sectors of the economy. The second factor is the poor monsoon," Glenn Levine, Senior Economist, Moody's Analytics said in a report released today.
Moody's Analytics said in its report that the slowdown in India's economy has been sharper and more broad-based than anticipated, and is now deeply entrenched across all sectors of the economy.
Despite the slowing growth, Moody's research arm said that both the Government and the Reserve Bank of India (RBI) had provided little policy response to the sharp slowdown in GDP growth.
Moody's Analytics added that weaker-than-average rainfalls during the southwest monsoon season would also weigh on India's GDP growth.