Predicting the outcome of COVID-19 outbreak, Moody’s Investors Service dropped its GDP growth prediction to 2.5 percent from a former 5.3 percent. The massive Coronavirus shockwave has affected the global economy in the past two months and will possibly bring upon more harm to both products and services industries.
Moody’s expressed all its opinions through its Global Macro Outlook where it has assessed the Indian economic scenario and stated that major dropdown in economy lay ahead for the country. This year is going to see loss of jobs followed by reduced average income while 2021 is going to be a deciding year. It will be next year when India will
try to regain strength and develop infrastructure at the same time. Actions taken by the government will be crucial in deciding the right future of the country.
"In India, credit flow to the economy already remains severely hampered because of severe liquidity constraints in the bank and non-bank financial sectors," it said.
Expectations were high during the end of the third quarter but the Coronavirus panic and outbreak all across the world has not only affected the native manufacturing of the country, but has also devastated the exports and imports. The GDP will be experiencing a fall based on an all round decline in the business ecosystem of the country.
Moody's said the global economy will contract in 2020, followed by a pickup in 2021. "We have revised our global growth forecasts downward for 2020 as the rising economic costs of the Coronavirus shock, particularly in advanced economies, and the policy responses to combat the downturn are becoming clearer," it said.
Some industry experts on the other hand are of the opinion that this Coronavirus outbreak is only temporary and with patience, India will overcome its terror. “We are taking proper steps at our manufacturing units to ensure that we keep them far away from contamination. Loss in economy is just temporary. India will regain strength in due time after all this over”, says Anil Lingayat, CEO, Godrej Material Handling.