New Delhi, Jun 2 (PTI) Congress leader Rahul Gandhi on Tuesday voiced concern over the state of India's economy, saying global rating agency Moody's has termed its handling by Prime Minister Narendra Modi "a step above junk".

He said lack of support to the poor and small and medium industry indicates that the worst is yet to come.

Also Read | Moody's Downgrades India's Ratings to Baa3, Maintains Negative Outlook.

"Moody's has rated Modi's handling of India's economy a step above JUNK. Lack of support to the poor and the MSME sector means the worst is yet to come," he said on Twitter.

Moody's Investors Service has downgraded India's sovereign credit rating for the first time in more than two decades, saying policymakers will be challenged to mitigate risks of low growth, deteriorating fiscal position and financial sector stress.

Also Read | Telangana Formation Day 2020: PM Narendra Modi Greets People, Says 'State is Making Valuable Contribution to India's Growth Trajectory'.

Downgrading India's rating by a notch to 'Baa3' from 'Baa2' assigned in November 2018, Moody's on Monday estimated India GDP shrinking by 4 per cent -- first full fiscal contraction in more than four decades, as the country faces a prolonged period of slower growth.

'Baa3' rating is the lowest investment grade -- just a notch above 'junk' status. Moody's had last downgraded India's rating in 1998.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)