Moody’s cut India’s Growth Forecast to 5.5 Percent

Moody's Analytics cut India's growth forecast to 5.5 percent for the fiscal year 2012-13, as it blamed government or RBI of inaction despite slowing economy, as well as a poor monsoon. The research unit of ratings agency Moody's Investors Service becomes the latest to cut India's growth forecasts this week.

Earlier CLSA and Citigroup had cut their growth outlooks for India to 5.4 percent and 5.5 percent, respectively for the fiscal year ending in March 2013. Moody’s noted despite the slowing growth both the government and the Reserve Bank of India had provided little policy response. Moody's added weaker-than-average rainfalls during the monsoon period would also weigh on India's growth. The research unit also cut its 2013 growth forecast to 6 percent from 6.2 percent.