Moody's Investors Service had earlier changed its outlook on India's ratings to "negative" from "stable", citing increasing risks that the country's economic growth will remain lower than in the past.
The Ministry of Finance on Friday responded to Moody's Investors Service changing India's outlook to 'negative', saying that the fundamentals of India's economy "remain quite robust" and assuring that inflation is under check.
Moody's Investors Service had earlier changed its outlook on India's ratings to "negative" from "stable", citing increasing risks that the country's economic growth will remain lower than in the past, thereby reflecting that prospects of reforms in the medium term have dimmed while stress in the financial sector has increased. The Finance Ministry, in its response today, refuted Moody's' assertions and stated, "India continues to be among the fastest-growing major economies in the world and its relative standing remains unaffected."
“IMF (International Monetary Fund) 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 organisations continue to underline a positive outlook on India,” the Finance Ministry statement added.
The cut in ratings by Moody's comes almost after two years when it had upgraded India's sovereign ratings to Baa2 from Baa3 in 2017, accounting the increase in 'economic and institutional reforms' by the Modi government. In the recent development, Moody's affirmed the Baa2 foreign-currency and local-currency ratings in India. The Finance Ministry today acknowledged the fact that the firm has kept that foreign-currency and local-currency long-term issuer ratings unchanged.
The Government has undertaken a series of the 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 statement provided, adding that India continues to offer strong prospects of growth in the near and medium-term.
Even though the international rating agency has estimated that the country's growth slowdown is in part long-lasting, assessments by the IMF and other multilateral organisations continue to underline a positive outlook on India, the Finance Ministry stated.
The entire PIB press release by the Ministry of Finance can be read here.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Moody's Investors Service")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}