Moody's Downgrades India's Outlook To Negative From Stable

by GoNews Desk 4 days ago Views 1468
Moody's Downgrades India's Outlook To Negative Fro
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The troubled Indian economy has been dealt a heavy blow. Well-known international ratings agency Moody’s has downgraded India’s rating from ‘stable’ to ‘negative’.

Moody’s said that the steps taken by the government to overcome economic sluggishness have not been effective.

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Moody’s said, “The rating has been downgraded keeping in mind the risks related to the growth of the Indian economy. It is clear that compared to earlier, the economy will progress at a sluggish pace, and the biggest reason for this is the ineffective policies of the government. The sluggishness is expected to go on for a long time due to lengthy economic crisis for rural families, reduced opportunities for new employment and the continuing financial crisis in NBFC.”

Moody’s said further that the scope for increasing investment and growth in business, and improvement and comprehensive tax base has lessened a lot.

The Indian economy grew at the rate of 5% in the first quarter — April to June — of this financial year. This is the worst performance after 2013. This is due to weakening demand among consumers and cuts in government expenditure.

Meanwhile, after the ratings downgrade, the government has said that the potential growth rate in the Indian economy is holding on and it is among the fastest growing economies of the world.

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