Moody's: India's GDP growth challenged by lackluster global demand, high leverage

In its latest report on the Indian economy, the US ratings agency, Moody’s Investors Services, stated that subdued global demand and high leverage are likely to weigh down on the country’s growth prospects.

Key Points:

India's (Baa3 positive) GDP growth over the next two years will be challenged by lackluster global demand and high leverage in some corporate sectors.

By contrast, India's medium-term potential will be supported by the gradual implementation of further targeted policy reforms

On Brexit: Any effects will be limited because exports to the UK and the rest of the European Union account for 0.4% and 1.7% of India's GDP respectively.

In addition, India is not significantly exposed to a potential sharp fall in capital flows to emerging markets.