New Deli, May 26 (KNN) Moody's has reduced the growth forecast of India for 2022 to 8.8 per cent, from its previous forecast of 9,1 per cent. 

However it has maintained a 5.4 per cent growth estimates is maintained for 2023.

The rating agency has said that high-frequency data suggest that the momentum from Q4 2021 carried through into the first four months of this year because of strong reopening momentum. 

“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 indicate that the investment cycle is strengthening," said Moody's.

"However, the rise in crude oil, food and fertilizer prices will weigh on household finances and spending in the months ahead," it said.

"Rate increases to prevent energy and food inflation from becoming more generalized will slow the demand recovery's momentum. But unless global crude oil and food prices rise further, the economy seems strong enough to maintain solid growth momentum,” said Moody’s.  (KNN Bureau)