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"The Indian economy is going into a tailspin; it is the time when you don’t worry so much about monetary stability and you worry a little bit more about demand. I think demand is a huge problem right now in the economy." - Abhijit Banerjee
On June 1, 2020, Moody’s downgraded India’s ratings to almost-junk status and maintained a negative outlook – and it came as no surprise. The Indian economy had not been doing well even before the COVID-19 disruption hit India’s shores, and now the virus and this downgrade will weaken its already-frail