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17 November 2017
 |
PM Modi (The Total Investment & Insurance
Solutions)
The
Central government on Friday welcomed the rating upgrade move by Moody's saying
it was long overdue. The Total
Investment & Insurance Solutions
Chief
Economic Adviser Arvind Subramanian said that the government will do what it
has to do on domestic front, jobs growth and investment revival.
Moody`s
Investor Services today
lifted the Government of India`s local and foreign currency debt ratings to
Baa2 from Baa3.
The rating agency said that the reforms will improve the
business climate in the country and raise productivity. The Total Investment & Insurance Solutions
Moody`s also
changed its rating outlook to stable from positive, saying that at the Baa2
level the risks to India`s credit profile were broadly balanced.
Moody`s
said the recently-introduced goods and services tax (GST), a
landmark reform that turned India`s 29 states into a single customs union for
the first time, will promote productivity by removing barriers to interstate
trade.
"In
the meantime, while India`s high debt burden remains a constraint on the
country`s credit profile, Moody`s believes that the reforms put in place have
reduced the risk of a sharp increase in debt, even in potential downside
scenarios," the ratings agency said in a statement.
Moody`s
expects India`s real GDP growth to moderate to 6.7 percent in the
fiscal year ending in March 2018 from 7.1 percent a year earlier.
Moody`s
also raised India`s local currency senior unsecured debt rating to Baa2 from
Baa3 and its short-term local currency rating to P-2 from P-3.
The
government of Prime Minister Narendra Modi eased tax requirements
last month for small- and medium-sized companies in response to growing
criticism of its economic stewardship.The
Total Investment & Insurance Solutions
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