The credit rating agency has lowered the earlier 5.8 per cent growth forecast, saying the GDP slowdown is lasting longer than expected.

The rating agency lowered India's outlook from 'stable' to 'negative', saying there were increasing risks of economic growth remaining materially lower than the past.

Moody's decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past

The Indian rupee has depreciated 13 per cent so far in 2018 and has touched a historic low of Rs 72.32 to a dollar.