On April 29, 2020, Moody’s Investors Service in its report titled “Global Macro Outlook 2020-21 (April 2020 update)” has decreased India’s growth forecast for the calendar year (CY) 2020 to 0.2%, from 2.5% projected in March 2020, due to the nationwide lockdown started from March 24, 2020. Moody also forecasted India’s growth for 2021 at 6.2%.
- The projection of GDP of G-20 advanced economies as a bloc is also declined by 5.8% in 2020.
Key Points:
-As we all know that in 2019, India lost the tag of the fastest-growing major economy to China. For 2020-2021 also, China is projected to grow 1% in 2020 and 7.1% in 2021, ahead of India.
-Among G20 nations, only China, India, and Indonesia are projected to witness economic growth in 2020 by Moody’s.
GDP growth rate estimates by various agencies for India in FY20-21
| Agency | Rating |
|---|---|
| India Ratings | (-) 2.1 to 1% |
| Confederation of Indian Industry (CII) | (-) 0.9 to 1% |
| Nomura | (-) 0.5% |
| Fitch ratings | 0.8% |
| Goldman Sachs | 1.6% |
| World Bank | 1.5 to 2.8% |
| International Monetary Fund (IMF) | 1.9% |
| Asian Development Bank (ADB) | 4% |
About Moody’s Corporation:
Headquarters– New York, United States (US)
President and Chief Executive Officer (CEO)– Raymond Whitehead McDaniel, Jr.
