What was the Moody’s rating for India for past 13 years? Is it now boost for Modi's Govt.
Narendra Modi, Prime Minister of India got some good news
from rating agency Moody’s, as the agency appreciated to the Indian
Government’s reforms by updating the rating of India after 13 years. Moody’s upgraded its rating to India from
BAA3 to BAA2 for its miserable increase of India by its reforms. Also they updated their rating from P-3 to
P-2 in respect of local short duration currency rating of India.
The Moody’s Investor Services opined that, the production
and productivity of commercial sectors will increase with the effect of reforms
in the country. They also changed the outlook
rating of India from “Stable” to “Positive”. Especially, the Moody’s have appreciated the financial
reforms like GST (Goods and Service Tax), which implemented by Indian Government
recently. They opined that, the constraints,
which faced by the states in the country will be resolve with the GST implementation
in India.
The Moody’s also expressed its view that, “unfortunately,
the heavy amount of interest on India wil be the main constraint”. The rating agency also said that, the risks by
heavy amount of interest on India will be reduced in future by speeding up of their
reforms”.
Moody’s expected to predict the GDP increase rate in India
will be 6.7% in current financial year i.e. 2017-18, as the GDP increase rate recorded
in previous year i.e. 2016-17 was recorded as 7.1%.
The Moody’s rating and its appreciation will become boost
to the Indian Government, who presently suffering with some negative propaganda
by its opposition parties like Congress, CPM and CPI, etc and also this update will
be fetch positively to Mr. Narendra Modi for the results of his Government’s reforms.
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