Credit rating agency, Moody's Investors Service in its ‘Global Macro Outlook 2022-23 (March 2022 Update)’ has lowered India's growth estimate by 0.4 percentage point for the current year to 9.1 per cent, from 9.5 per cent earlier, as the agency is expecting high fuel and potentially fertilizer costs would weigh on government finances down the road, potentially limiting planned capital spending.
Moody's Investors Service further said that India is particularly vulnerable to high oil prices, given that it is a large importer of crude oil. Because India is a surplus producer of grain, agricultural exports will benefit in the short-term from high prevailing prices.
In the report titled ‘Economic Growth will suffer as fallout from Russia's invasion of Ukraine builds’, the rating agency said that India's growth is likely to be 5.4 per cent in 2023. Besides, it said that the forecast revisions also factor in the somewhat stronger underlying momentum than the agency had not accounted for previously.
