Moody’s lowers India’s outlook to “negative” from “stable”

New Delhi (Reuters) – Moody’s Investors Service on Thursday changed its outlook on India’s ratings to “negative” from “stable”, citing increasing risks that the country’s economic growth will remain lower than in the past.

The outlook partly reflects government and policy ineffectiveness in addressing economic weakness, which led to an increase in debt burden from already high levels, the ratings agency said.

India’s economy grew only 5.0% year-on-year between April and June, its weakest pace since 2013, as consumer demand and government spending slowed amid global trade frictions.

The international ratings agency said it estimates that the country’s growth slowdown is in part long-lasting while backing its other ratings for India.