Consultations with various political parties on the GST Bill will be held before taking decision on the session
GN Bureau | August 25, 2015
Even as union minister M Venkaiah Naidu today said that government may convene second part of the monsoon session to pass key legislations, rating agency Moody’s Investors Service on Tuesday cautioned that it would revise India’s rating outlook to stable from positive if there is a reversal of the policy reform process, if banking system metrics continue to weaken or if there is a decline in foreign exchange reserves coverage of external debt and imports.
The rating could be upgraded if its expectations of gradual but credit-positive reforms are realized in actual policy implementation and if the recent improvement in inflation, fiscal and current account ratios is sustained. This has been mentioned in its annual update to the market, titled Credit Analysis. Moody's has a 'Baa3' rating on India with a positive outlook. Since 2004, Moody's has rated India at 'Baa3', the lowest investment grade, just a notch above 'junk' status.
In April, the rating agency changed its outlook on India’s rating to positive from stable while maintaining the lowest investment grade status, based on its view that proposed and implemented policies are likely to lower sovereign credit risk by stabilizing inflation, improving the regulatory environment and increasing infrastructure investment while maintaining the ongoing improvement in fiscal ratios.
To calm down the high volatility in the Indian rupee, Reserve Bank of India (RBI) governor Raghuram Rajan on Monday said India has sufficient foreign exchange reserves to prevent any undue volatility in currency markets.
“India has $355 billion of reserves and another $25 billion because our forward dollar sales are not due for the next one year; so, we have $380 billion to play with if needed,” Rajan said on the sidelines of a banking conference in Mumbai. “...we try to prevent undue volatility. If we see undue volatility, we have the resources to deal with it.”
Moody’s Analytics, the research arm of Moody’s, last week reduced its growth projection for India to 7% from 7.5% estimated earlier, blaming below-normal monsoon and its impact on rural demand and interest rates.
Meanwhile, the government has reached out to the Congress as Parliamentary Affairs Minister Venkaiah Naidu met senior Congress leader Mallikarjun Kharge at his residence.
Sources said the government will hold consultations with various political parties on the GST Bill and only after all parties express their intent to come on board for the passage of the Bill, a final call will be taken.
It was earlier reported that the government was planning to convene the special session from August 31 to September 4.
Business houses loosened their purse strings while making donations to political parties, showed an analysis carried out by Association for Democratic Reforms (ADR). Various sectors of business houses, between FY 2012-13 and 2015-16, donated a total of Rs 956.77 crore, cons
The PPP model has been made mandatory in metro rail projects, but it has not been successful in at least three cities – Delhi, Mumbai and Hyderabad. The cabinet chaired by prime minister Narendra Modi approved a new Metro Rail Policy that m
In absence of proper regulatory and supervisory capabilities, some regulators in Asia-Pacific region believe the next financial crisis might be triggered by a cyber attack, said a new report on cyber security. According to Deloitte`s ‘cyber regulation in Asia Pacific’ report, cyber at
There is a need for speedier clearance of projects by states, RBI’s monetary policy committee said and added that there is an urgent need to reinvigorate private investment, remove infrastructure bottlenecks and provide a major thrust to the Pradhan Mantri Awas Yojana for housing needs of all.
It has been a year since you took charge of the new ministry. What is your biggest worry as in charge of education in India? My first priority – and that reflects my worry as well – is to improve the quality of government schools. It’s a tough job. Unfortunately,
Should National List of Essential Medicines be expanded?