Moody's Investors Service on Monday downgraded India's sovereign rating to 'Baa3' from 'Baa2', saying there will be challenges in implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position.
Moody's said India faces prolonged period of slower growth and implementation of key reforms by India remains relatively weak.
Moody's expects India's real GDP to contract by 4% in fiscal 2021 due to the shock from the coronavirus pandemic and related lockdown measures, followed by 8.7% growth in fiscal 2022 and closer to 6% growth thereafter. "Moody's has today downgraded the Government of India's foreign-currency and local-currency long-term issuer ratings to Baa3 from Baa2. "Moody's has also