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Moody's cuts Calendar year 2022 India GDP growth Forecast

Published on May 27, 2022
Current Context: According to the rating agency Moody’s India GDP growth rate is pegged at 8.8% for 2022 (CY22) compared to 9.1% earlier. Stating the reason as high inflation.
Moody's cuts Calendar year 2022 India GDP growth Forecast
  • According to them, it is expected that India’s retail inflation to increase to 6.8% in 2022 compared to 5.7% in 2021.
  • Even though the Reserve Bank of India (RBI) has increased the repo rate by 40 basis points, inflation remains above the upper tolerance limit set by the RBI i.e 2-6 percent.
  • The main reason behind the high inflation is a rise in crude oil, food, and fertilizers prices due to the Ukraine crisis which directly impacts household finances.
  • However many steps have been taken to tackle it like strong credit growth, a large increase in investment intentions announced by the corporate sector, and a high budget allocation to capital spending by the government but still need to recover from this situation.
  • Not only that rating agency has also lowered its global growth projection to 3.1% for 2022.


Q.1 According to Moody what will be India’s GDP growth rate for the Current year 2022?
a. 7.2%
b. 8.8%
c. 7.6%
d. 8.1%
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