Another warning

Moody’s decision to change India’s credit ratings outlook to negative from stable is another reminder of the deteriorating economic situation. Most economists believe that economic growth in the July-September quarter is likely to have slipped below the six-year low of 5 per cent recorded in the April-June quarter.

Growth in the second half of the fiscal year is expected to improve, but largely because of the base effect. Although the change in the ratings outlook is unlikely to have a significant impact, it will dampen sentiment further, as was evident in the stock market on …

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