Lockdown hurts Indian economy, hopes to improve in 2021-22: Moody's

New Delhi, 22 May 2020 Friday

The nationwide lockdown caused by the Corona virus has affected the Indian economy. The economy has suffered huge losses. In addition, rating agency Moody's said when the Indian economy will improve.

The Moody's Investors Service, in its latest report, predicts that the Indian economy may slow down in FY20-21.

The Moody's report said that the domestic economy is likely to slow down due to lower consumption in the Indian economy due to the lockdown and trade closures.

According to the report, even before the Corona and the lockdown, the growth rate of the Indian economy was slow which was further slowed down by the Corona. The Indian economy reached a six-year low.

The report also talks about the government's economic package. According to Moody's, the Indian government has announced an economic stimulus package to boost the economy, but the fiscal year 2020-21 will see a real decline in the Indian economy.

Let me tell you that earlier Moody's had expressed the possibility that India's GDP would be zero. In addition, the report provides information on the state of improvement. Moody's said the Indian economy is expected to improve in FY2021-21.

In its report, Moody's said the lockdown would affect not only the private sector but also the public sector. India's unorganized sector is in crisis.

Danger is looming because of the trade stalemate. The possibility of millions being laid off is being expressed. The risk of rising unemployment in the country is increasing.