Haberler      English      العربية      Pусский         Kurdî      Türkçe Delivering News and Insights Around the World Keltis
  En.Haberler.Com - Latest News
SEARCH IN NEWS:
  HOME PAGE 23/11/2019 03:26 
08.11.2019 17:12 News >> Moody's Lowers India's Outlook To Negative

Moody's Lowers India's Outlook To Negative

Government says economic fundamentals remain 'quite robust'

Moody's downgraded its outlook on India to negative from stable amid claims by the government that its economic fundamentals remain "quite robust".
In a statement late Thursday, the credit rating agency said the Indian economy was facing increasing risks "leading to a gradual rise in the debt burden".
The downgraded rating came as India's gross domestic product (GDP) growth has gone down from a peak of 8.2% in 2016-17 to 6.8% in 2018-19, with the fourth quarter of 2018-19 dipping to 5.8%.
It further dropped to 5% in the first quarter of 2019-20. Besides, the country is recording a 45-year high unemployment rate.
In an earlier interview, Indian journalist MK Venu with expertise in political economy told Anadolu Agency that he had never seen such a steep decline of Indian economy in the past three decades.
Moody's said that the prospects of further reforms that would support business investment and growth at high levels and significantly broaden the narrow tax base "have diminished".
Author and journalist Kallol Bhattacharjee told Anadolu Agency in an email interview from New Delhi that the effects of demonetization of a major portion of Indian currency in circulation can no longer be hidden. "The fact, however, is that credit rating bodies and digi-cash groups like BTCA [Better Than Cash Alliance] had cheered India's draconian turns for digital economy in 2016-17 and they should be held accountable too for the causes that they espouse," he said.
In a controversial move in 2016, Indian President Narendra Modi banned all 500- and 1,000-rupee notes ($7 and $14) saying it will flush out untaxed wealth. In the weeks that followed, long queues were seen outside banks as people rushed to change their old banknotes for new ones.
India's Finance Minister Nirmala Sitharaman responded to Moody's outlook in a statement to local broadcaster NDTV.
"As India's potential growth rate remains unchanged, assessment by IMF [International Monetary Fund] and other multilateral organizations continues to underline a positive outlook on India," she said.
"Fundamentals of the economy remain quite robust with inflation under check and bond yields low. India continues to offer strong prospects of growth in near and medium term," she added.
Bhattacharjee, however, said that the current government in India needs to raise consumer confidence in a banking system that is "yet to recover from the digital economy measures like demonetization of 2016".
"For that [recovery of economy], the country requires less economic adventurism and more political harmony. A deficiency of either or both will hurt Indian economy further," Bhattacharjee said.

The Moody's statement came a few days after India decided to opt out of "largest" regional trading agreement -- Regional Comprehensive Economic Partnership (RCEP) -- that includes ASEAN members besides Australia, China, Korea, Japan and New Zealand. -



        Latest News
Fenerbahce Gets First Road Win In Euroleague Season -28 minutes ago...
Yellow Canaries beats up on Asvel Villeurbanne.
US' Pompeo, UAE FM Discuss Russian Presence In Libya 2 minutes ago...
Diplomats 'discussed the need to counter the Iranian regime’s destabilizing behavior,' says State Dept.
Migrant Smuggling Network Busted By Police In Poland 17 minutes ago...
Polish border guard holds 17 suspects accused of migrant smuggling, facilitation of irregular migration, says Europol.
Basaksehir Beat Galatasaray 1-0 At Turk Telekom Stadium -28 minutes ago...
The Orange Navies ride 10 match unbeaten streak, ending Galatasaray's 41 match home unbeaten streak in Turkish Super Lig.
Bolton Claims White House Froze His Twitter Account 17 minutes ago...
Trump's former national security advisor suggests action may have been taken because 'of fear of what I may say?'

 
      Top News
Saudi Airstrikes In Yemen Down 80% In 2 Weeks: UN Envoy Saudi Airstrikes In Yemen Down 80% In 2 Weeks: UN Envoy
Germany Preparing To Host Cyprus Talks Germany Preparing To Host Cyprus Talks
Turkey's Borsa Istanbul Down At Close Turkey's Borsa Istanbul Down At Close
Ancient Baths Discovered In Southeastern Turkey Ancient Baths Discovered In Southeastern Turkey
Daesh/ISIS Kill Two Police Officers In Northern Iraq Daesh/ISIS Kill Two Police Officers In Northern Iraq
'Need Security Pact To Avoid Kashmir-Like Situation' 'Need Security Pact To Avoid Kashmir-Like Situation'
New European Commission To Get Final Confirmation New European Commission To Get Final Confirmation
Germany: Alleged Xenophobic Attack Injures One Turkish Germany: Alleged Xenophobic Attack Injures One Turkish
52 Years: Israeli Settlements Usurping Palestinian Lands 52 Years: Israeli Settlements Usurping Palestinian Lands
Turkey Hosts International Conference On Kashmir Turkey Hosts International Conference On Kashmir