Slowdown In Economic Growth Late Last Year Temporary: Moody's Analytics

"Our take is that the slowdown late last year will be temporary and even salutary, helping to wring some of the demand-side pressures out of the economy without stopping it wholesale," the report by Moody's Analytics said.

Moody's Analytics todaysaid India's domestic economy, rather than trade, is its primary engine of growth and the slowdown in economic activity late last year will only be temporary.

The government data released last week showed India's gross domestic product (GDP) growth slowed to a three-quarter low of 4.4 per cent in October-December,2022, mainly due to contraction in manufacturing and low private consumption expenditure.

While the manufacturing sector contracted by 1.1 per cent, private consumption expenditure slowed to 2.1 per cent in the October-December quarter of current fiscal.

In its report on emerging market outlook, Moody's Analytics said growth slowed substantially on a year-ago basis, with private consumption lagging overall GDP for the first time since the Delta wave of Covid-19 struck the economy in the second quarter of 2021.