Moody Rating India: Global credit rating agency Moody’s has lowered the rating of the Indian economy. Moody’s has downgraded India’s rating, which was previously stable.
New Delhi: India has received a major setback for the global rating agency on the economic aspect. Global credit rating agency Moody’s has downgraded India’s rating. Moody’s reduced India’s rating from ‘stable’ to ‘negative’ citing low economic growth rates. The agency has projected India’s budget deficit to be 3.7 percent by March 2020, well below the government’s target of 3.3 percent. The agency has confirmed the BAA 2 foreign-currency and local currency ratings for India.
The global rating agency has said, “Moody’s negative outlook for India from stable will be lower than the country’s economic growth.” The agency said that India’s economic growth is expected to be much lower than before. Moody’s has lowered India’s GDP estimate for the financial year 2019-20 from 6.2 per cent to 5.8 per cent. While Moody’s has forecast India’s growth rate to be 6.6% for the financial year 2020-21.
Moody’s said in a statement, “Moody’s decision to negative the scenario shows an increasing risk of economic growth being much lower than before. The current rating shows lower government and policy influence in dealing with long-standing economic and institutional weakness than Moody’s earlier estimates. Due to which the burden of debt already reached a high level may gradually increase further.
However, the government is taking all steps to boost the country’s economy, which is expected to help. However, the Finance Ministry has issued a statement after rating of Moody’s, describing India as the fastest growing economy in the world. The statement issued by the ministry states, ‘India is the fastest growing economy in the world. The infrastructure of the economy is very strong with inflation under control and bond yields coming down. ”
The ministry has said that the IMF has stated in its recent World Economy Outlook that India’s economy will grow at a growth rate of 6.1 per cent in 2019, which is expected to reach 7 per cent in 2020. The IMF and several other multilateral organizations have kept India’s economy positive.