Tuesday, 10 January 2017

Reforms in India to boost medium term growth: Moody's-The Total Investment & Insurance Solutions

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10 January 2017

Global credit rating agency Moody's on Tuesday said the ongoing reforms in India are likely to boost medium-term growth while the overall outlook for creditworthiness of sovereigns in Asia Pacific is stable. The Total Investment & Insurance Solutions

In a statement, Moody's Investors Service said the capacity of governments to implement measures and the effectiveness of policies in achieving the respective governments' objectives would shape the sovereigns' credit profiles over the coming year.

"In particular, in India (Baa3 positive), Indonesia (Baa3 stable) and the Philippines (Baa2 stable), ongoing implementation of reforms was likely to boost medium-term growth," Moody's said.

Moody's analysis is contained in its just released report titled 'Sovereigns - Asia Pacific: 2017 Outlook - Stable Outlook Balances External, Political Risks Against Economic, Institutional Reforms'. The Total Investment & Insurance Solutions

In its report Moody's said it had maintained a positive outlook on India's rating in November 2016, based on its expectation that economic and institutional reforms would support continued robust growth. The Total Investment & Insurance Solutions

"Measures including relaxation of foreign investment restrictions, passage of the Goods and Services Tax, and advancement of a workable bankruptcy code have potential to stimulate private sector investment, which could lead to stable, balanced growth and gradually lower the government debt burden," Moody's said. The Total Investment & Insurance Solutions


According to Moody's beyond the short-term negative impact on growth, demonetisation has the potential to raise government revenues and provide some fiscal space to support growth if required.The Total Investment & Insurance Solutions

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