Moody’s (Moody’s Corporation) an American financial services company changed India’s ratings on Thursday (November 7) from “stable” to “negative.”
Moody’s refereed to the amber alert situation of India’s economic growth, partly due to lower government and policy effectiveness. According to Moody’s the debt burden of India has increased substantially and thus the economic growth will be lower than the past year. India’s economic growth hit a six-year low in the April-to-June quarter, during which the economy grew 5% from 2018.
“While government measures to support the economy should help to reduce the depth and duration of India’s growth slowdown, prolonged financial stress among rural households, weak job creation, and, more recently, a credit crunch among non-bank financial institutions (NBFIs), have increased the probability of a more entrenched slowdown,” Moody’s analysts said in a report.
A latest report published by Moody’s said that, the likelihood of advancement reforms that could support investment and growth, to broaden India’s already suffering tax base have now been diminished.
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