Moody’s Investors Service changed India’s rating outlook to negative from stable

Moody’s Investors Service changed India’s rating outlook to negative from stable
Moody’s Investors Service changed India’s rating outlook to negative from stable

Moody’s Investors Service changed India’s rating outlook to negative from stable

Global rating agency Moody’s Investors Service changed its outlook for India’s sovereign rating (Baa2) to negative from stable while keeping the foreign-currency and local-currency long-term issuer ratings unchanged at Baa2.

According to the rating agency its 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, leading to a gradual rise in the debt burden from already high levels.


Finance Ministry Nirmala Sitharaman responds to Moody’s change in outlook, 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 Government has undertaken a series of financial sector and other reforms to strengthen the economy as a whole. Government of India has 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 fundamentals of the economy remain quite robust with inflation under check and bond yields low. India continues to offer strong prospects of growth in the near and medium term.

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