India’s economy faces a big setback: Report

India’s economy faces a big setback: Report

*NEW DELHI: **India’s economy faces a big setback as the *Moody’s Investors Service on Thursday cut India’s ratings outlook to “negative” from “stable”.

The rating has been downgraded citing increasing risks that growth in Asia’s third-largest economy will remain lower than in the past.

The ratings agency said its action partly reflected government and policy ineffectiveness in addressing economic weakness, which in turn led to an increase in debt burden from already high levels, Reuters has reported.

Moody’s retained its foreign and local currency ratings at ‘Baa2’.

The Nifty 50 index fell 0.4% in early trade on Friday, while the rupee weakened to 71.31 against the dollar, versus Thursday’s close of 70.965.