Rating agency sees risks to growth, govt says growth prospects remain strong
GN Bureau | November 8, 2019
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.
As India gears up to celebrate its 71st Republic Day on January 26, it will host Brazilian president Jair Bolsonaro as the chief guest of the event that marks the day when the country formally adopted the Constitution as the guiding document. This will be Bolsonaro’s maiden visit, which he would like
With the outbreak of Coronavirus reported from China, India has started taking precautionary measures, and begun screening passengers of selected flights. “As of 21st January, a total of 43 flights and 9156 passengers have been screened for novel Coronavirus illness. Till now, no case
Every middle-class Indian dreams of a home coupled withlanded property to live off the rent. However, large initial investment, particularly inmetros, and low yields ensure that real estate is out of the reach of the common man. A return of 7-8 percent from commercial properties is considered highly commen
The Maharashtra State Election Commission has urged the residents to take advantage of the ongoing Electors Verification Programme (EVP) and register their names along with those of the members of their families in the electoral rolls. The drive, which started on November 11, 2019, will continue till Febru
The budget season is here, and the annual document has gone to print, beginning the lock-in period till its presentation in parliament on February 1. The Halwa ceremony, marking the commencement of the budget printing process, was held in North Block Monday morning in the presence of finance
Investment banker, venture capitalist and stock-market expert Vallabh Bhansali is the co-founder and chairman of Enam Group, a pioneering equity research company in the country. He is a promoter of spiritual and cultural traditions and also an expert on development economics, behavioural science and co