Moody's in its May Global Macroeconomic Outlook report, has reduced growth forecasts for India to 7.3% from the previous forecast of 7.5% .
The Central Statistics Office (CSO) is scheduled to release GDP numbers for the fourth quarter as well as the 2017-18 fiscal on May 31.
"The Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration. We expect GDP growth of about 7.3 percent in 2018, down from our previous forecast of 7.5 per cent," said the report by Moody's.
It, however, kept growth expectation for 2019 unchanged at 7.5 percent.
According to the report, emerging market countries are forecast to grow by 5.2% in both, 2018 and 2019, coming down from the previous 5.3%.
The report further mentioned that the outlook for the EM countries is based on an assessment of each country's overall economic strength and the ability to tackle volatility of capital flows.
"The ongoing financial market turbulence in emerging market countries poses risks of a broader negative spillover effect on growth for a range of countries beyond Argentina and Turkey, while there is a risk that high oil prices will weigh on purchasing power and present an upside risk to inflation. A re-escalation of trade tensions between the US and China is another risk factor to growth," said Madhavi Bokil, Moody's vice president.
First Published: IST