Moody’s upgrade: Amit Shah says growth rate will soon touch 7.5%

The Moody's upgradation of India's sovereign credit rating vindicates the Modi government's "hard work and reform process", BJP chief Amit Shah said today, exuding confidence that the country's growth rate will soon touch 7.5 per cent.
 

For the first time in 13 years, the US-based rating agency upped India's credit rating, showing that the economic structure, ruined during the UPA's 10-year rule, is now being strengthened by the Modi government, a BJP press release quoting Shah said.

"The Modi government s good governance and reforms receive yet another vindication. Moody s upgrades India s sovereign ratings for the 1st time since 2004," Shah said in a tweet.

India, which was once seen as one of the five fragile nations that posed a hurdle to global economic recovery, became the fastest growing major economy under the Modi government, he added.

Citing Moody's, the BJP chief said the reforms initiated by the government yielded positive results in all segments of the economy.

"Moody's believes that the Modi government's reforms will improve the business climate, enhance productivity, attract more investment and put India on a higher growth trajectory," he said, adding "the country will soon achieve 7.5 per cent growth rate".

Referring to India's recent jump in the ease of doing business index of the World Bank and findings of Pew research on Modi's popularity, Shah said these are the reflection of the government's hard work.

"Prime Minister Modi has laid the foundation of new India so that the country can again become 'Vishwa Guru'," he said.

Later talking to reporters, Union Minister Piyush Goyal said the government will continue with reforms and the model of good governance adopted by it.

The Congress today accused the Modi government of "clutching at straws" to reclaim the lost credibility, and said it and rating agency Moody's have failed to gauge the mood of the nation.
 

Congress communications in-charge Randeep Surjewala also sought to downplay Moody's rating upgrade of India, saying the same agency had miscalculated US subprime mortgages before the economic meltdown.

"After destroying India's economy, the Modi government is clutching at straws to claim lost credibility," he said on Twitter.

"Modiji and Moody's 'jodi' (duo) have failed to gauge the mood of the nation," he said, adding that hunger deaths, agri distress, job losses, lowest credit ratings, rising prices, plunging exports, flawed GST, demonetisation disaster, stagnant growth are the real indices to measure it.

At the AICC briefing, Congress leader Rajiv Shukla said the government relied upon a World Bank report of Delhi and Mumbai to claim that "all is well" and quoted a PEW survey of only 2,464 people to claim victory.

"At this pace, it looks like the BJP and Modi will contest the next election from Washington," he said taking a dig at the prime minister.

"Are these reports only meant for clapping?" Shukla asked, while noting that GDP growth rate was on a constant decline.

Surjewala also said, "At this pace, Modiji should be fighting next election abroad."

Taking a dig at Finance Minister Arun Jaitley, Surjewala said, "Mr Jaitley, do remember that Moody s, S&P and other rating agencies defaulted in rating American sub-prime mortgages...before the economic meltdown." "Lesson is stop acting and get your act together. Shun arrogance and listen to the trade and industry," he told the finance minister.

"Mr Jaitley, history teaches us valuable lessons. You ignore them at your peril! As greed, collusion and crony capitalism sank banks and Wall Street, please read who contributed to wiping away people's money.

"Hope you are not following the same trajectory!" he said.

Shukla also accused the Modi government of relying on reports of international agencies to "divert attention from the poor state of the Indian economy".