Moody’s changes India outlook, FinMin cites robust fundmanetals

Rating agency sees risks to growth, govt says growth prospects remain strong

GN Bureau | November 8, 2019


#finance ministry   #growth   #Economy   #Moody’s  
Image: Ashish Asthana
Image: Ashish Asthana

The global rating agency Moody’s Investors Service has changed its outlook on India’s ratings from ‘stable’ to ‘negative’, but the finance ministry maintained that “the fundamentals of the economy remain quite robust”.

On Thursday, Moody’s underlined risks that Indian economy will witness lower growth than in the recent past. The decision reflects its perception that the government policy has not been effective in addressing economic weaknesses.

This prompted the finance ministry to issue a statement on Friday morning, saying, “The fundamentals of the economy remain quite robust with inflation under check and bond yields low. India continues to offer strong prospects of growth in near and medium term.”
 
The government also highlighted the fact that Moody’s had kept the foreign-currency and local-currency long-term issuer ratings unchanged at Baa2. 

“India continues to be among the fastest growing major economies in the world, India’s relative standing remains unaffected. IMF in their latest World Economic Outlook has stated that Indian Economy is set to grow at 6.1% in 2019, picking up to 7% in 2020. As India’s potential growth rate remains unchanged, assessment by IMF and other multilateral organizations continue to underline a positive outlook on India,” the finance ministry noted.

It also referred to the series of reforms in finance and other sector to strengthen the economy as a whole. It added that the government had also proactively taken policy decisions in response to the global slowdown. “These measures would lead to a positive outlook on India and would attract capital flows and stimulate investments,” the finance ministry said.

Comments

 

Other News

Hotel responsible for vehicle in valet parking: supreme court

Once a guest hands over the car keys to the valet, the vehicle is under the hotel’s responsibility, and it will have to compensate any damage to it, the supreme court has ruled. In a judgment under the contract law, a bench of justices Mohan M Shantanagoudar and Ajay Rastogi has upheld

Homebuyers have filed 1,821 cases against builders

Amid oversupply, slackening demand and financial troubles, many builders have not been able to deliver homes to buyers, leaving the latter in the lurch. The buyers in turn have taken recourse to filing cases against builders: a total of 1,821 cases under the Insolvency and Bankruptcy Code (IBC) 2016 were p

Rajya Sabha looks back and forward on historic occasion

The beginning of its historic 250th session gave the upper house of parliament an opportunity to take stock of its past and its future, the challenges ahead and the ways to meet them. The house on Monday took up a discussion on ‘The Role of Rajya Sabha in Indian Polity and the Way Forw

Kartarpur Sahib: The corrdidor can show the way to peace

When the corridor to the Gurudwara Darbar Sahib, in Kartarpur (Pakistan), was opened for the pilgrims from India on November 9, prime minister Narendra Modi recalled the fall of Berlin Wall, which took place on the same date 30 years ago. The Berlin Wall collapse not only reunited the two Ge

On A Personal Note with Anees Bazmee, film writer, director and producer

Starting out as a child artist, in a career spanning more than three and half decades Anees Bazmee has written/directed more than 60 films in Hindi, Tamil and Marathi in a variety of genres. After writing films like ‘Hum Farishtey Nahin’, ‘Swarg’, and ‘Aankhen’, he d

Rafale review petitions dismissed

The supreme court on Thursday dismissed the petitions seeking a review of its December 2018 verdict on the Rafale deal. The bench found no merit in review petitions that had sought an investigation into the high-profile defence deal. “We don’t feel necessary to order FIR or rovin



Archives

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter