Moody’s Investor Service has projected (-) 10.6 per cent of India’s growth for the current financial year 2020-21. However, earlier this estimate was -11.5 per cent. Moody’s has changed its estimate because manufacturing and employment generation are being given prominence in India at the moment and focus remains on long term growth. Last week, the central government released a new financial package of 2.7 lakh crore. According to Moody’s, the central government initiative aims to enhance the competitive environment in the manufacturing sector in India and create jobs. This will increase investment and credit availability in the infrastructure in the country and will provide support to sectors in crisis.
Moody’s has lowered real and inflation-based GDP estimates for the financial year 2020-21 and according to his estimates, India’s GDP will be negative at 10.6 per cent in the current season. Earlier this estimate was 11.5 percent. Moody’s has kept its estimate positive for the next financial year 20021-22 and India’s GDP will grow at a rate of 10.8 per cent in the next financial year. Earlier it was estimated to increase at the rate of 10.6 per cent. According to Moody’s, India’s economic growth may remain around 6 per cent in the medium term.
