New Delhi: Amid threats of a widening drought, global credit rating agency Moody’s on Wednesday projected India’s economic growth to slip to 6.2% this fiscal from 6.7% in the previous fiscal.
“India’s GDP growth for fiscal 2009-10 is forecast to slow to 6.2%,” Moody’s Economy.com, the global rating agency’s research arm said.
Moody’s forecast is in agreement with the Reserve Bank of India’s prediction of 6% growth with an upward bias. This is lower than the country’s growth rate of 6.7% for the fiscal year 2008-09.
“The drought is clearly taking steam out of India’s growth momentum and another emerging concern is food price inflation,” the agency said.
The report said unlike the global recession, which turned out to be “only a mild drag on India’s economic performance” the impact of the delayed monsoon could be more on the economy.