Moody’s on Thursday slashed India’s growth estimate for the current year to 9.1 per cent from 9.5 per cent, saying the high fuel and fertiliser import bill could limit the government’s capital expenditure.

In its Global Macro Outlook 2022-23 , Moody’s said that India’s growth is likely to be 5.4 per cent in 2023.

The global rating firm, which had raised India’s GDP growth number for 2022 to 9.5 per cent from 7 per cent less than a month ago, said it was now scaling down its global growth outlook and raising inflation projections in light of the spurt in commodity prices, supply shortages, business disruptions and the dented sentiment to the Russia-Ukraine conflict.

"High fuel and potentially fertiliser costs would weigh on government finances down the road, potentially limiting planned capital spending,” it said.