Udayavni Special

Moody’s outlook on India ‘negative’, govt says fundamentals in place


PTI, Nov 8, 2019, 9:28 AM IST

New Delhi: Moody’s Investors Service has changed the outlook on India’s ratings to ‘negative’ from ‘stable’, saying there was increasing risks that economic growth will remain materially lower than the past.

It affirmed the Baa2 foreign-currency and local-currency long-term issuer ratings for India.

“Moody’s decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses than Moody’s had previously estimated, leading to a gradual rise in the debt burden from already high levels,” the rating agency said in a statement.

While government measures to support the economy should help to reduce the depth and duration of India’s growth slowdown, prolonged financial stress among rural households, weak job creation, and, more recently, a credit crunch among non-bank financial institutions (NBFIs), have increased the probability of a more entrenched slowdown, it said.

“Moreover, the prospects of further reforms that would support business investment and growth at high levels, and significantly broaden the narrow tax base, have diminished,” it said.

Top News

Second non-Vande Bharat Mission aircraft lands at MIA with stranded Kannadigas

‘Unlock 1’: Here’s how to get e-pass for Kerala-Karnataka interstate travel

Kerala elephant tragedy: Another jumbo suspected to have been killed in similar fashion

Maha CM shares do’s and dont’s asks people to ignore rumours

Schools to re-open in July only if COVID-19 situation in state is under control

Mangaluru: Cong asks state govt to allow Kannadigas to return from other states

3 militants including JeM’s IED expert, Masood Azhar’s nephew killed in Pulwama encounter

Related Articles More

Amazon India expands packaging-free shipping to over 100 cities

Microsoft announces programme for agritech startups in India

Zoom booms as pandemic drives millions to its video service

Paytm claims telecom firms not preventing “phishing” ; HC seeks Centre, Trai response

World’s new billionaire emerges from Asia’s costliest divorce

MUST WATCH

Tragedy and chaos: Former MIA director recalls Mangalore Air Crash

Lockdown relaxation: Long queues outside liquor stores in Mangaluru

Indian Coast Guard thank Covid-19 warriors

#WeFeed – Feeding stray animals during lockdown!

Mysuru-origin doctor honoured with parade for her service in treating COVID-19 patients in US

Latest Additions

Second non-Vande Bharat Mission aircraft lands at MIA with stranded Kannadigas

‘Unlock 1’: Here’s how to get e-pass for Kerala-Karnataka interstate travel

Mangaluru: U T Khader lambasts dist admin for lack of med facilities for poor

Kerala elephant tragedy: Another jumbo suspected to have been killed in similar fashion

Nawazuddin’s niece files sexual harassment case against his brother

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.