Moody's Investors Service today slashed India's growth forecast to 5.4 per cent for 2020 from 6.6 per cent projected earlier.

In its on Global Macro Outlook, Moody's said India's economy has decelerated rapidly over the last two years and expects economic recovery to begin in the current quarter.

The growth projections are based on calendar year and as per its estimates, India has clocked a GDP growth of 5 per cent in 2019.

Moody's said it expects additional easing by the RBI. However, if the recent rise in CPI inflation, is seen to have second-round effects, this would make it more challenging for the central bank to cut interest rates further, it added.

Global GDP growth forecast has been revised down, and Moody's now expect G-20 economies to collectively grow 2.4 per cent in 2020, a softer rate than last year, followed by a pickup to 2.8 per cent in 2021.