Moody Rating India: Moody’s negative from India’s credit rating outlook stable, the Government said – Uur Base is strong: Rating agency Moody’s changed India’s credit rating from Outlook Stable to Negative. Moody’s said on Friday that the outlook has changed in view of the risk of economic growth declining in the coming times.
Moody Rating India
However, Moody’s retained the Baa2 foreign and local currency long-term issuer ratings for India. On Moody’s outlook, the government has said that the base of the economy is strong. Reducing Moody’s outlook means that it may reduce India’s rating in terms of investment in the future. Due to this, foreign investment in the country may decrease.
‘Government steps will reduce the impact of economic slowdown’
- Moody’s said that because of the prolonged crisis in rural areas, low employment opportunities and now a cash crunch in non-banking financial institutions, the economic slowdown has increased. Also, the steps taken by the government to support the economy should reduce the time and impact of the slowdown.
- Moody’s says that if the nominal GDP growth does not accelerate, the government will have to face a lot of pressure on the front to reduce the budget deficit and prevent the debt burden from increasing.
- The government has said that India is one of the fastest growing economies in the world. We have made several reforms related to financial and other sectors to strengthen the economy. These steps will benefit the country’s outlook and increase investment. The latest estimates of the International Monetary Fund on the World Economy have projected India’s GDP growth to be 6.1% this year and 7% next year.