New Delhi: Following credit ratings agency Moody’s changed outlook on India’s rating from ‘stable’ to ‘negative’, the government on Friday responded saying that “the fundamentals of the economy remain quite robust with inflation under check and bond yields low”.
The centre noted that India continues to be among the fastest-growing major economies in the world and that the country relative standing remains unaffected. “IMF 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 said in a statement.
To strengthen the economy as a whole, the government also said that it has taken a series of financial and other reforms. “Government of India has also proactively taken policy decisions in response to the global shutdown. These measures would lead to a positive outlook on India and would attract capital flows and stimulate investments,” the statement further read.
Credit ratings agency Moody’s on Thursday cut India’s credit ratings outlook from ‘stable’ to ‘negative’, saying that the outlook reflected government and policy ineffectiveness in addressing the economic slump.
It must be noted here that India’s GDP growth rate fell to a nearly seven-year low of 5 per cent in the first quarter (April-June) of this year’s fiscal year. As a result, the demand for consumer products was horribly affected, especially in the country’s domestic manufacturing sector.