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Reforms in India to boost medium term growth: Moody’s

Reforms in India to boost medium term growth: Moody's
Chennai, Jan 10 (IANS) 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.

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'.

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.

"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.

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.

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Reforms in India to boost medium term growth: Moody's

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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.

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