India faces a potential sharp slowdown in credit availability as non-bank financial institutions face a possible credit squeeze even as the asset quality is stabilising, Moody’s said in its 2019 Global Emerging Market Outlook.“In India, an ample foreign exchange reserves buffer and very low external debt levels help provide greater resilience to economic shocks, including from potentially higher oil prices. However, India also faces a potential sharp slowdown in credit availability as non-bank financial institutions face a possible credit squeeze,” stated the report.
