India's creditworthiness gets positive rating from Moody's
It also predicted consistent spending on food and fuel subsidies, with election getting closer in India as well as Bangladesh.
The International Monetary Fund has warned that the imminent recession will hit a third of the global economy. The Reserve Bank of India's governor Shaktikanta Das has also expressed concerns over debt pressure on trade partners affecting the country. But amid all the gloom, ratings agency Moody's has called India's credit worthiness stable, alongside the rest of the Asia Pacific region.
Moody's has highlighted India's debt sustainability and financial stability as strengths, and added that government liquidity risks are contained. At the same time, Moody's gave a negative outlook for other regions, saying that they are facing a slowdown despite financial consolidation.
At the same time the Moody's report has also maintained that being in the post-pandemic recovery mode will lead to some glitches in output for India. An institutional banking system as well as investor base has also worked in India's favour by making credit more affordable. It also predicted consistent spending on food and fuel subsidies, with election getting closer in India as well as Bangladesh.
But Moody's also forecast increasing debt burden and credit becoming less affordable, as growth slowing down in China remains a risk for the region. Geopolitics, alongside currency depreciation and liquidity issues, will also continue to be a decisive factor.
Published on: Monday, January 09, 2023, 05:07 PM ISTRECENT STORIES
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