UN agency attributes decline in growth to impact of weakening global economy and the fiscal pressures that may prevent the govt from ramping up its overall capital expenditure beyond a point.
The ratings agency expects RBI's monetary policy committee to hike the key policy rate by another 50 basis points to 5.9% in FY23.
Apart from denying exports-led growth opportunity, India’s aversion to trade with big and powerful blocs would shut the door to global supply and value chains
Ind-Ra's estimate shows that even if GDP grows at 7.6% every year after FY23, then also India would be able to catch up with pre-pandemic trend growth only by FY35.
Fitch Ratings expects the RBI to continue raising repo rate to 5.9% before year-end.
Moody's retains its sovereign rating for India at Baa3 with a stable outlook.
Economists point out to the rural stress and high inflation having a bearing on the consumption story in the economy.
This is the third cut in India's GDP growth forecast by Moody's this year.
With its own sectoral growth prospects and capex iffy, India's expectation of 7.2% growth is largely dependent on good luck on external and internal fronts
Apple's decision to shift production of its flagship iPhone 14 model to India should open the floodgates for other major conglomerates to follow suit, says SBI.
